- EUR/USD is facing intense sale, as President Donald Trump has confirmed that it will impose tariffs on the European Union.
- U.S. dollars will be strengthened as investors rush to safe fleets in the World Trade War.
- Investors are waiting for the USM manufacturing PMI data in January.
EUR/USD NOSEDIVES with more than 1 % or more 1.0240 at the beginning of the week. The major currency pair has been hoped, as the US (US) President Donald Trump has repeatedly imposed tariffs on the European Union (EU). On weekends, Donald Trump has pounded 25 % of tariffs in Canada and Mexico and 10 % in China. Trump also warned that he would raise taxes in trading blocks, but did not provide a lot of information.
“It will definitely happen in the European Union. I can tell you it because they really used us,” said Trump. He also accused him of not buying enough cars and agricultural products on the old continent. Trump added the EU, “There is almost nothing, we will take everything from them.”
Inopting on tariffs on the euro area accelerates the problem. The shared currency block has already faced the risk of deceleration. The Preliminary Euro Society Production (GDP) data in the fourth quarter of 2024 indicated that the economy was flat after 0.4 % in the third quarter. The shrinking German economy remained a weak connection with flat GDP growth in the Euro. Flash Germany's GDP data indicated that the economy had 0.2 % contracted in the previous quarter of 2024.
The signs of further weakness in the euro economy may be that the European Central Bank (ECB) will continue to reduce interest rates. The ECB reduced the sedimentary fee on Thursday to 25 Basis points (BPS) to 2.75 %, led to clear monetary policy paths. This is an extension. Traders have been completely priced by three interest rates, and ECB officials are convinced that this year's inflation will continue to return to 2 % desired interest rates, so they confirm that they will come by summer. I am doing it.
On Monday, FLASH HARMONIZED INDEX (HICP), a consumer price (HICP) report in January, indicated that the price pressure had contracted every month. Core HICP (excluding volatile food and energy prices) decreased by 1 % after increasing 0.5 % in December. During the same period, the headline HICP also contracted 0.4 %. In the year, HiCP, a headline, was faster than the estimated value of 2.6 % and steadily increased by 2.7 %. Core HICP is expected to be 2.4 % faster than expected, 2.5 %.
Mover of Daily Digest Market: EUR/USD faces a sharp sale in the World Trade War
- EUR/USD faces intense sale due to the strength of US dollars (USD). The US dollar's safe demand has increased significantly as the US President has begun a trade war. The US dollar index (DXY), which tracks the value of green back to six major currencies, has increased over 109.50.
- US dollars are mainly influenced by Trump's comments on world trade. However, investors have many US economic data, including ISM manufacturing and services purchasing manager index (PMI), changing ADP employment, non -farm salary (NFP), and Joltz jobs in December. Focus. this week.
- Investors can pay close attention to labor market -related data and know the current situation. On Wednesday, the Fed has maintained interest rates at the current level and led the central bank to stay in the waiting mode until the “influence of inflation or some weakness in the labor market”.
- In the Monday session, investors will focus on the S & P Global manufacturing PMI data, which has been modified with the US Supply Management (ISM) Management (ISM) Management (ISM) manufacturing and purchase.
Today's US dollar price
The following table shows the US dollar (USD) change rate for today's listed currency. The US dollar was the strongest for the euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | Chf | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.98 % | 0.43 % | -0.31 % | -0.16 % | 0.94 % | 0.44 % | -0.15 % | |
| EUR | -0.98 % | -0.14 % | 0.03 % | 0.16 % | 0.43 % | 0.77 % | 0.18 % | |
| GBP | -0.43 % | 0.14 % | -0.92 % | 0.31 % | 0.58 % | 0.91 % | 0.33 % | |
| JPY | 0.31 % | -0.03 % | 0.92 % | 0.15 % | 1.40 % | 1.67 % | 0.81 % | |
| CAD | 0.16 % | -0.16 % | -0.31 % | -0.15 % | 0.00 % | 0.60 % | 0.01 % | |
| AUD | -0.94 % | -0.43 % | -0.58 % | -1.40 % | -0.00 % | 0.34 % | -0.23 % | |
| NZD | -0.44 % | -0.77 % | -0.91 % | -1.67 % | -0.60 % | -0.34 % | -0.57 % | |
| Chf | 0.15 % | -0.18 % | -0.33 % | -0.81 % | -0.01 % | 0.23 % | 0.57 % |
The heat map shows the changing rate of major currencies to each other. Basic currencies are selected from the left row, and the quota is selected from the top line. For example, if you select US dollars from the left row and move to the Japanese yen along the horizon, the change rate displayed in the box indicates USD (base)/JPY (QUOTE).
Technical analysis: When RSI is below 40.00, EUR/USD is looking at the negative aspect.
EUR/USD dive to nearly 1.0200 vertically. Last week, major currency pairs began to decrease after short -lived recovery moved to 1.0533. This pair is below the 1.0378 and about 1.0440 index transfer average (EMA) for 20 days and 50 days, suggesting a bearish tendency.
The 14 -day relative strength index (RSI) slides less than 40.00 and suggests a strong bearing momentum.
Looking down, the lowest 1.0177 and 1.0100 round -level support on January 13 will function as a major pair of support zone. Conversely, the 1.0500 psychological resistance is the important barrier for Eurables.
Economic index
Consumer price index for core harmony (MOM)
The core harmonious index of consumer prices (HICP) measure changes in the price of the European currency coalition and the typical basket of services. HICP, release Eurosat Every month, the same methodology is used in all member states and the contribution is weighted, so harmony can be taken. Mom numbers compare the price of the product in the reference month with the previous month. Core HiCP excludes volatile ingredients such as food, energy, alcohol, and tobacco. Core HICP is an important indicator for measuring inflation and changes in purchasing trends. In general, high reading is considered bullish in the euro (EUR), but low reading is considered bearish.
read more.
Last release: February 3, 2025 10:00 (PRE L)
frequency: monthly
Actual: -1 %
consensus: –
Previous: 0.5 %
sauce: Eurosat
