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EUR/USD holds steady above 1.1300 amid softer USD; lacks bullish conviction

  • EUR/USD edges higher on Thursday amid the emergence of fresh USD selling.
  • Trade-related uncertainties hold back investors from placing directional bets.
  • Trump’s press conference at 14:00 GMT eyed for some meaningful impetus.

The EUR/USD pair attracts some dip-buyers during the Asian session on Thursday and reverses a part of the overnight slide from the 1.1375-1.1380 resistance zone. Spot prices, however, remain confined in a familiar range held over the past week or so amid mixed cues and currently trade just above the 1.1300 mark.

Friedrich Merz’s election as Germany’s chancellor reduces uncertainty in the Eurozone's economic powerhouse and lends some support to the shared currency. The US Dollar (USD), on the other hand, struggles to gain any meaningful traction despite the Federal Reserve's (Fed) hawkish pause on Wednesday, and turns out to be another factor acting as a tailwind for the EUR/USD pair.

In fact, Fed Chair Jerome Powell said that there is a great deal of uncertainty over US trade tariffs and that the right thing to do now is to wait for further clarity. This, in turn, suggests that the US central bank is not leaning toward cutting rates anytime soon. However, the heightened economic uncertainty led by US President Donald Trump's trade tariffs keeps the USD bulls on the defensive.

Meanwhile, investors remain on edge amid Trump's rapidly shifting stance on trade policies. Moreover, the European Union reportedly will propose tariffs on Boeing aircraft if talks with the US fail, raising the risk of a further escalation of trade conflict. This, in turn, holds back traders from placing aggressive directional bets around the EUR/USD pair and leads to the subdued price action.

Traders now look forward to the release of the US Weekly Initial Jobless Claims data, though the focus will remain glued to Trump's press conference at 14 GMT in the Oval Office later during the US session. This will play a key role in influencing the USD price dynamics and provide some impetus to the EUR/USD pair.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.

 USDEURGBPJPYCADAUDNZDCHF
USD -0.01%-0.13%0.10%0.05%-0.23%-0.27%0.19%
EUR0.00% -0.11%0.13%0.03%-0.22%-0.26%0.20%
GBP0.13%0.11% 0.25%0.15%-0.09%-0.14%0.28%
JPY-0.10%-0.13%-0.25% -0.06%-0.34%-0.38%0.03%
CAD-0.05%-0.03%-0.15%0.06% -0.28%-0.32%0.10%
AUD0.23%0.22%0.09%0.34%0.28% -0.04%0.38%
NZD0.27%0.26%0.14%0.38%0.32%0.04% 0.42%
CHF-0.19%-0.20%-0.28%-0.03%-0.10%-0.38%-0.42% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).


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Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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