Vasilis Tsaprounis
Independent Analyst
The single European currency is trading slightly below the 1.14 level in the early hours of Wednesday in a narrow trading range pending critical macroeconomic data from the eurozone and the United States.
Yesterday, as expected, did not bring any surprises. The trading range was extremely narrow, only 20-30 basis points on either side of 1,14 level, as investors avoided taking large bets.
President Trump's enigmatic policy continues to be troubling and despite the milder tones of recent days confusion remains intense and the dust has not yet settled from the recent developments about the trade war between China and the United States.
Yields on US government debt securities have declined significantly, alleviating fears of a major debt crisis in the United States for the time being.
This development is likely to give more breathing space to the American currency, which has recently been strongly questioned, with the pressure on US government debt securities being one of the reasons.
In general, the market picture does not show significant differences with the events that have monopolized investor interest lately remaining high on the agenda.
President Trump's controversial policy, despite the milder tones of recent days, continues to cause concern and currently remains the most important thorn in American currency's effort to return to significantly higher prices.
The rhetoric of de-escalation of the trade war between the United States and China is on going , have a positive effect on the course of stock markets and has restored some calm , but investors remain cautious about the prospect of large bets in favor of the American currency.
Although geopolitical developments have monopolized investors' interest lately, the next few days with several critical macroeconomic data are likely to bring economic developments back to the table.
From today until Friday, culminating the new jobs in the United States, the agenda is extremely rich with a multitude of macroeconomic data for the Eurozone and US that are likely to give some new direction to the exchange rate.
My thinking remains the same, although I see some good possibility that the US dollar has room for further correction I prefer to remain on hold.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD extends the range play ahead of RBA rate decision
AUD/USD stalls the previous day's move higher near the 200-day SMA and consolidates during the Asian session on Tuesday as traders opt to wait for the RBA decision before placing fresh directional bets. Heading into the key central bank event risk, a positive risk tone and the US-China trade optimism support the Aussie, though a modest USD uptick caps the upside for the currency pair.
EUR/USD: Minor support comes at 1.1060
EUR/USD climbed to the 1.1290 region at one point on Monday, though it later gave back part of those gains as the Greenback attempted to recover from its sharp decline, with investors continuing to digest Moody’s downgrade of the US credit rating on Friday.
Gold price drifts lower amid receding safe-haven demand, modest USD uptick
Gold price stalls the previous day's move higher near the $3,250 supply zone and edges lower during the Asian session on Tuesday. A positive risk tone undermines demand for traditional safe-haven assets and weighs on the bullion amid a slight USD recovery. However, Fed rate cut bets should cap the USD and support the non-yielding yellow metal amid persistent geopolitical risks.
Crypto products post $785 million of inflows as Strategy scoops up 7,390 Bitcoin
Crypto products recorded a fifth straight week of inflows last week, adding $785 million and lifting its cumulative inflows in 2025 to $7.5 billion, according to CoinShares' weekly report on Monday.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.