- EUR/USD holds above 1.0700 after closing in positive territory on Wednesday.
- ECB President Lagarde reiterated that they will continue to follow a data-dependent approach.
- US economic docket will feature Retail Sales and weekly Initial Jobless Claims data.
Following Tuesday's sharp decline, EUR/USD staged a technical correction and closed in positive territory on Wednesday. The pair struggles to gather recovery momentum on Thursday and continues to fluctuate below 1.0750 as markets await US data releases.
The improving risk mood and retreating US Treasury bond yields made it difficult for the US Dollar (USD) to build on Tuesday's rally that was fuelled by the stronger-than-expected Consumer Price Index (CPI) data.
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | -0.01% | 0.18% | 0.03% | 0.05% | -0.24% | 0.03% | -0.16% | |
EUR | 0.01% | 0.20% | 0.05% | 0.05% | -0.23% | 0.04% | -0.14% | |
GBP | -0.20% | -0.22% | -0.18% | -0.16% | -0.45% | -0.17% | -0.36% | |
CAD | -0.03% | -0.04% | 0.17% | 0.01% | -0.27% | 0.00% | -0.18% | |
AUD | -0.03% | -0.06% | 0.16% | 0.00% | -0.29% | -0.01% | -0.19% | |
JPY | 0.25% | 0.25% | 0.43% | 0.28% | 0.29% | 0.29% | 0.11% | |
NZD | -0.04% | -0.05% | 0.17% | -0.01% | 0.01% | -0.27% | -0.19% | |
CHF | 0.16% | 0.14% | 0.34% | 0.18% | 0.21% | -0.09% | 0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Early Thursday, the 10-year US yield continues to stretch lower toward 4.2% and US stock index futures trade modestly higher on the day, not allowing the USD to gather strength and helping EUR/USD hold its ground.
While testifying before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on Thursday, European Central Bank (ECB) President Christine Lagarde reiterated that they will continue to follow a data-dependent approach to policy. Lagarde further added that the ECB's forward-looking wage tracker points to strong wage pressures. These comments, however, failed to provide a boost to the Euro.
Later in the day, January Retail Sales and the weekly Initial Jobless Claims data from the US will be looked upon for fresh impetus.
Retail Sales are forecast to decline by 0.1% and the number of first-time applications for unemployment benefits is expected to come in at 220,000. A significant decline in Retail Sales, a reading close to -0.5%, combined with a stronger-than-anticipated increase in Jobless Claims could weigh on the USD with the immediate reaction. On the other hand, the USD could stay resilient against its rivals in case Jobless Claims arrive near 200,000 and Retail Sales rise.
If the data come in mixed, investors are likely to wait for Wall Street's opening bell before taking any positions. A bullish opening in major equity indexes could hurt the USD and support EUR/USD in the American session.
EUR/USD Technical Analysis
EUR/USD was last seen trading near the mid-point of the descending regression channel and the Relative Strength Index (RSI) indicator was moving sideways slightly below 50, reflecting a lack of recovery momentum.
On the upside, 1.0760 (upper limit of the descending channel) aligns as next resistance. A 4-hour close above that level could attract buyers and open the door for a leg higher toward 1.0800, where the 100-period Simple Moving Average (SMA) is located.
If EUR/USD fails to hold above 1.0730 (mid-point of the descending channel), it could push lower toward 1.0700 (psychological level, static level, lower limit of the descending channel) and 1.0660 (static level from November).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
How will US Dollar react to Fed policy announcements – LIVE
The Federal Reserve (Fed) is widely expected to lower the policy rate by 25 bps to the range of 4.5%-4.75% after the November meeting. Chairman Powell's comments on the policy outlook in the aftermath of Donald Trump's victory could drive the USD's valuation.
EUR/USD extends recovery toward 1.0800 as USD retreats ahead of Fed
EUR/USD continues to push higher toward 1.0800 on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trump win-inspired USD longs ahead of the Federal Reserve's highly-anticipated policy announcements.
GBP/USD rebounds above 1.2950 after BoE policy announcements
GBP/USD trades in positive territory above 1.2950 on Thursday. The Bank of England (BoE) lowered the policy rate by 25 basis points as expected but the upward revision to inflation projections helped the pair edge higher. Market focus now shifts to the Fed's policy decisions.
Gold nears $2,700 as Fed’s announcement looms
Gold recovers following Wednesday's sharp decline and trades above $2,680. The benchmark 10-year US Treasury bond yield edges lower after Trump-inspired upsurge, allowing XAU/USD to hold its ground ahead of the Fed policy decisions.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.