The euro fell yesterday after a report came out suggesting that the ECB’s remaining card could have another 50 bps rate hike. However, with the EUR/USD currently rising to the 1.0860 level, the dollar is now picking up nicely as the dollar is feeling the heat in European trading.
Push Up Nears Highs Earlier in Week as Bullish Breakout Begins EUR/USD
EUR/USD
EUR/USD is a currency pair that includes the European Union’s single currency, the euro (symbol €, code EUR) and the US dollar (symbol $, code USD). A currency pair’s rate tells you how many euros it takes to buy one dollar. For example, if EUR/USD trades at 1.2, it means that 1 euro is worth 1.2 dollars. Why EUR/USD is the Most Popular Trading Pair Compared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world after the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is the primary currency offered by all brokerages and often has the lowest spreads compared to other currency pairs. Ultimately, this currency follows the two most economical blocks in the world and for this reason sees the most volume. EUR/USD has many factors that affect its rate. From the euro side, economic data in the euro area and internal factors within the bloc can easily affect interest rates. Even smaller member states could put substantial pressure on the euro, as we saw with Greece during bailout talks in the 2010s. Alternatively, developments in the US and Federal Reserve typically affect EUR/USD. Many examples include financial crisis relief, tax cuts during the Trump administration, Covid-19 relief measures, and more.
EUR/USD is a currency pair that includes the European Union’s single currency, the euro (symbol €, code EUR) and the US dollar (symbol $, code USD). A currency pair’s rate tells you how many euros it takes to buy one dollar. For example, if EUR/USD trades at 1.2, it means that 1 euro is worth 1.2 dollars. Why EUR/USD is the Most Popular Trading Pair Compared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world after the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is the primary currency offered by all brokerages and often has the lowest spreads compared to other currency pairs. Ultimately, this currency follows the two most economical blocks in the world and for this reason sees the most volume. EUR/USD has many factors that affect its rate. From the euro side, economic data in the euro area and internal factors within the bloc can easily affect interest rates. Even smaller member states could put substantial pressure on the euro, as we saw with Greece during bailout talks in the 2010s. Alternatively, developments in the US and Federal Reserve typically affect EUR/USD. Many examples include financial crisis relief, tax cuts during the Trump administration, Covid-19 relief measures, and more.
remain intact. Today’s weaker dollar is just another factor contributing to the recent technical momentum. This is better represented in the weekly chart below.
As noted above, there is room for an upward push around 1.0942 towards the 50.0 Fib retracement level for the downswing from 2021 to last September. This is an important point to focus on before the next resistance at 1.1000 is added.
Euro sentiment today is also helped by Villeroy’s earlier comments, which reaffirmed that Lagarde’s previous interest rate guidance is still in effect.