- EUR/USD fluctuates in a tight channel below 1.0800 on Friday.
- Hawkish comments from ECB officials help the Euro limit its losses.
- The pair needs to break out of the 1.0700-1.0800 range to find direction.
Following a two-day rebound, EUR/USD failed to preserve its bullish momentum and closed virtually unchanged on Thursday. The pair continues to move sideways below 1.0800 as investors' search for fresh catalysts continues.
The US Dollar (USD) outperformed its rivals in on Thursday as the benchmark 10-year US Treasury bond yield stretched higher after the Department of Labor reported that there were 218,000 Initial Jobless Claims in the week ending February 3, down from 227,000 in the previous week. Nevertheless, the currency struggled to gather further strength and helped EUR/USD limits its losses as Wall Street's main indexes held steady.
Meanwhile, cautious comments from European Central Bank (ECB) officials on the timing of a policy pivot seem to be further supporting the Euro. ECB policymaker Martins Kazaks said that he was not optimistic for a rate cut in Spring and Governing Council Member Francois Villeroy de Galhau noted on Friday that the central bank will probably cut rates this year. Similarly, policymaker Pierre Wunsch said on Thursday that there is value in waiting to get more comforting wage data before taking policy action.
Euro price this week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the Swiss Franc.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.01% | -0.05% | -0.09% | -0.03% | 0.55% | -1.16% | 0.86% | |
| EUR | 0.01% | -0.03% | -0.08% | -0.03% | 0.56% | -1.15% | 0.86% | |
| GBP | 0.03% | 0.02% | -0.06% | 0.00% | 0.58% | -1.12% | 0.88% | |
| CAD | 0.09% | 0.08% | 0.04% | 0.06% | 0.63% | -1.07% | 0.94% | |
| AUD | 0.03% | 0.03% | -0.01% | -0.06% | 0.58% | -1.12% | 0.88% | |
| JPY | -0.55% | -0.56% | -0.61% | -0.62% | -0.57% | -1.71% | 0.31% | |
| NZD | 1.14% | 1.14% | 1.10% | 1.06% | 1.11% | 1.68% | 1.98% | |
| CHF | -0.87% | -0.87% | -0.90% | -0.96% | -0.89% | -0.30% | -2.03% |
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).
The economic calendar will not feature any high-impact data releases on Friday. EUR/USD could show some signs of life toward the end of the European session amid week-end flows but investors could refrain from taking large positions.
EUR/USD Technical Analysis
1.0800 (Fibonacci 50% retracement level of the latest uptrend, 50-period Simple Moving Average (SMA) on the 4-hour chart, descending trend line) aligns as stiff resistance for EUR/USD. If the pair clears that hurdle and starts using it as support, 1.0840 (100-period SMA) and 1.0870 (Fibonacci 23.6 retracement) could be seen as next resistances.
On the downside, interim support is located at 1.0760 (20-period SMA) before 1.0700 (psychological level, Fibonacci 61.8% retracement).
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
EUR/USD falls to fresh daily lows below 1.0400 after upbeat US data
EUR/USD came under selling pressure early in the American session following the release of United States macroeconomic figures. The December ISM Services PMI unexpectedly surged to 54.1, while November JOLTS Job Openings rose to 8.1 million, also bearing expectations.
GBP/USD extends retracement, struggles to retain 1.2500
GBP/USD lost further traction and battles to retain the 1.2500 mark after hitting an intraday high of 1.2575. Stock markets turned south after the release of upbeat American data, providing fresh legs to the US Dollar rally.
Gold trims early gains, trades around $2,650
Spot Gold lost its bullish traction and retreated toward the $2,650 area following the release of encouraging US macroeconomic figures. Jumping US Treasury yields further support the US Dollar in the near term.
Bitcoin Price Forecast: BTC holds above $100K following Fed’s Michael Barr resign
Bitcoin edges slightly down to around $101,300 on Tuesday after rallying almost 4% the previous day. The announcement of Michael S. Barr’s resignation as Federal Reserve Vice Chair for Supervision on Monday has pushed BTC above the $100K mark.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
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.