EUR softens on weaker German trade – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is trading defensively with a marginal 0.1% decline against the US Dollar (USD), softening back toward Wednesday’s lows around 1.16, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Bond market signals confidence in France’s political developments

"EUR weakness was observed on the back of weaker than expected trade figures from Germany, as August data offered a surprise contraction in exports. The weaker German trade data follow Wednesday’s disappointing industrial production print, suggesting a softening in the euro area’s economic outlook. Yield spreads are steady however, and comments from the ECB remain neutral."

"France’s political situation remains uncertain and President Macron has stated his intention to name a new Prime Minister by Friday evening. The France-Germany 10Y spread is narrowing and appears to be signaling confidence in President Macron’s ability to form a new cabinet ahead of the October 13 budget deadline."

"EUR/USD continues to trade defensively as it softens back toward Wednesday’s low around 1.16. The RSI is pushing below 40 and signaling modest bearish momentum. Support appears limited between 1.16 and the early August low under 1.14. We look to a near-term range bound between support at 1.16 and resistance at 1.1650."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold rises above $4,950 as US-Iran tensions boost safe-haven demand

Gold price holds positive ground near $4,985 during the early Asian session on Thursday. The precious metal recovers amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Zora launches attention markets on Solana network

Zora has launched a new attention markets feature on the Solana network, allowing users to trade and speculate on emerging online cultural trends.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.