- EUR/USD falls about 1,1350 while the US dollar resumes its recovery due to the increase in probabilities of unwinding in the commercial war between the US and China.
- Beijing is considering additional tariffs on some US goods.
- Holzmann of the ECB warns about the structural weakness in the eurozone economy.
EUR/USD It lies down around 1,1350 during the European negotiation hours on Friday. The main currency pair weakens due to a recovery movement in the US dollar (USD) in the hope of an improvement in commercial relations between the United States (USA) and China.
The US dollar index (DXY)which follows the value of the dollar against six main currencies, resumes its upward recovery on Friday after correcting about 99.20 the day before. The USD index rises to about 99.65 and seeks to break over the weekly maximum around 100.00.
The confidence of the participants of the financial market in which the commercial war between the greatest powers of the world could decline has increased, since China has indicated that it is considering suspending the 125% tariff on imports of medical equipment and some US industrial chemicals in the US, Bloomberg reported Thursday.
This week, dialogues from the White House expressing optimism that Washington and Beijing could reach an agreement have fed the hope that the tariff war will not intensify anymore. On Tuesday, US President Donald Trump declared that “the discussions with Beijing are going well” and added that he believes that “they will reach an agreement.”
On the contrary, China has denied any discussion with the US, “there have been no economic and commercial negotiations between China and the United States,” said a Beijing spokesman on Thursday. In addition, China has clarified that the US needs to “completely cancel all unilateral tariff measures” if you want commercial conversations.
In the front of monetary policy, a choir of policy responsible has indicated that excessive uncertainty due to the new economic policies of US President Trump could damage the economy. The president of the Bank of the Federal Reserve of Minneapolis, Neel Kashkari, warned Thursday that the uncertainty raised by the president’s policies could lead to “business dismissals.” Kashkari ruled out the possibility that companies have begun to reduce workforce, but warned that some companies indicate that they are preparing for “possible employment cuts if uncertainty continues.”
Daily summary of market movements: EUR/USD falls while the euro exceeds its peers
- EUR/USD slides down due to the strength of the USD. The euro (EUR) is upward in front of its main peers, except the American currencies, on Friday, despite the fact that the dovish bets of the European Central Bank (ECB) are increasing due to the growing concerns that inflation in the Eurozone could be below the 2% target of the Central Bank.
- On Thursday, the person in charge of policies of the ECB and governor of the Finnish Central Bank, Olli Rehn, warned about the downward risks for inflation. “It is quite possible that the projections for medium -term inflation in the current circumstances may be below the 2%target,” Rehn said outside the spring meetings of the International Monetary Fund (IMF) and the World Bank. Rehn expressed with confidence that current situations “justify an interest rate cut in June.”
- During the European negotiation hours, the person responsible for the ECB and governor of the Central Bank of Austria, Robert Holzmann, has shown concerns about structural weakness in the continent. Holzmann hopes that the fears of economic shocks will remain intact despite the fact that the tariffs announced by Donald Trump be reduced. “I see economic scars even if tariffs are reduced,” Holzmann said. Such scenario also paves the way for a relief of monetary policy.
- The next trigger for the euro would be the headlines of the White House and the European Union (EU) about the possible commercial relations between both sides of the Atlantic.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.30% | 0.20% | 0.50% | 0.23% | 0.50% | 0.70% | 0.29% | |
| EUR | -0.30% | -0.11% | 0.23% | -0.09% | 0.19% | 0.40% | -0.02% | |
| GBP | -0.20% | 0.11% | 0.34% | 0.03% | 0.31% | 0.50% | 0.06% | |
| JPY | -0.50% | -0.23% | -0.34% | -0.27% | -0.02% | 0.16% | -0.26% | |
| CAD | -0.23% | 0.09% | -0.03% | 0.27% | 0.18% | 0.47% | 0.03% | |
| Aud | -0.50% | -0.19% | -0.31% | 0.02% | -0.18% | 0.21% | -0.24% | |
| NZD | -0.70% | -0.40% | -0.50% | -0.16% | -0.47% | -0.21% | -0.44% | |
| CHF | -0.29% | 0.02% | -0.06% | 0.26% | -0.03% | 0.24% | 0.44% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
Technical analysis: EUR/USD descends about 1,1350
EUR/USD falls about 1,1350 on Friday. However, the perspective From the main currency pair it remains bullish since the 20 -week exponential mobile average (EMA) is upward inclined around 1,0885.
The 14 -week relative force (RSI) index rises to levels close to overlying over 70.00 in the weekly graphic, indicating a strong bullish impulse, but no possibilities of any correction cannot be ruled out.
Looking up, the psychological level of 1,1500 will be the main resistance for the torque. On the contrary, the maximum of July 2023 of 1,1276 will be a key support for the euros of the euro.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
