|

EUR/USD drops to fresh lows near 1.0740 on ECB headlines

The EUR/USD came under renewed selling pressure amid headlines suggesting that the ECB's message at its March 9 meeting has been overinterpreted by the markets as a step to exit. The pair quickly fell to 1.0740, where it renewed the weekly low and made a weak correction afterward. As of writing, the EUR/USD is down 0.45% at 1.0765.

ECB's message

Reuters, in a recent report, said that one ECB source expressed that what they wanted to communicate in March was reduced tail risks, but now they are worried about a potential yield surge due to overinterpretation by the markets. Following the report, the probability of a December rate hike by the ECB as priced by money markets slipped to 50% from 70%.

Euro under heavy pressure on ECB headlines

Brexit

On a separate note, the Brexit process, which officially started with European Council President Donald Tusk receiving a letter from the British ambassador today, doesn't look like it's going to be smooth as a leaked copy of the European Parliament's resolution showed that there won't be any free trade arrangements in the next two years.

European parliament: No free trade agreement with Britain in next two years - The Guardian

Technical outlook

A break below 1.0710 (Fib. 38.2% - Nov/Jan fall) could aim for 1.0670 (50-DMA) and 1.0630 (100-DMA). On the upside, the first technical hurdle aligns at aligns at 1.08 (psychological level) followed by 1.0845 (200-DMA) and 1.0905 (Mar. 27 high).

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

More from Eren Sengezer
Share:

Editor's Picks

EUR/USD holds above 1.1800 after German sentiment data

EUR/USD stays in positive territory above 1.1800 on Monday after the data from Germany highlighted a modest improvement in business sentiment in February. Meanwhile, the US Dollar stays under pressure amid growing unceratinty surrounding the US trade regime, allowing the pair to hold its ground.

GBP/USD rises toward 1.3550 as tariff confusion slams USD

GBP/USD extends the advance toward 1.3550 on Monday. The US Dollar faces intense selling pressure as tariff uncertainty lingers following US President Trump's latest announcement. Traders will take more cues from the broader market sentiment and central bank talks. 

Gold climbs above $5,100 on broad USD weakness

Gold sticks to its bullish bias near the monthly above $5,100 on Monday. Renewed trade-war fears, along with rising geopolitical tensions in the Middle East, turn out to be key factors that underpin the safe-haven precious metal and validate the constructive outlook.

Cardano braces for impact as US tariff storm brews

Cardano is down 4% at press time on Monday, entering its third consecutive day of decline. Bearish bias in Cardano’s derivatives market positional buildup aligns with rising pressure on the broader cryptocurrencymarket amid US President Donald Trump's reassessment of global tariffs and domestic conflict with the US Supreme Court. 

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.