|

EUR/USD regained 1.0600, extending its gains due to a soft US Dollar

  • EUR/USD to finish the week above 1.0600 after hitting a weekly low of 1.0533.
  • A risk-on impulse and falling UST bond yields are a headwind for the US Dollar.
  • US ISM Non-Manufacturing data showed the US economy remains resilient.

EUR/USD reversed its course and is set to finish the week with gains of more than 0.80% on a softer US Dollar (USD) amidst speculations that the US Federal Reserve (Fed) would not hike rates beyond what money market futures expect. The EUR/USD exchanges hands at 1.0635 after hitting a daily low at 1.0588.

EUR/USD trimmed Wednesday’s losses as investors downplayed hawkish Fed commentary

US equities are set to finish the week with gains. The US Dollar Index (DXY), a measure of the buck’s value vs. a basket of peers, slides from a two-and-a-half-month high down to 104.526 after US data reaffirmed a solid economic status in the United States (US).

Business activity in the US improved, as shown by the US ISM Non-Manufacturing PMI for February was 55.1, a tick lower than the previous month’s 55.2, but exceeded expectations of 54.5, indicating that business activity is still strong. The prices index subcomponent, sought by investors for clues about inflation, jumped to 65.5, exceeding estimates of 64.5 but trailing Janiary’s data.

Meanwhile, Federal Reserve officials crossed newswires, with Fed Governor Michelle Bowman and Dallas Fed President Lorie Logan did not comment on monetary policy. The Boston Fed President Susan Collins commented that inflation remains too high and added that

Aside from this, the Eurozone (EU) revealed S&P Global Services and Composite PMIs came above previous readings. Meanwhile, inflationary figures announced on Thursday came below last month’s data but above estimates, a reason for the ECB to continue to hike interest rates.

Even though figures were higher than expected, investors had already priced in a 50 bps rate hike by the European Central Bank (ECB) as announced by its President Christine Lagarde in its last meeting presser. However, recent data have ECB policymakers split on what signal the bank should send to the markets.

EUR/USD Technical levels

EUR/USD

Overview
Today last price1.0635
Today Daily Change0.0035
Today Daily Change %0.33
Today daily open1.06
 
Trends
Daily SMA201.0671
Daily SMA501.0726
Daily SMA1001.0487
Daily SMA2001.0329
 
Levels
Previous Daily High1.0673
Previous Daily Low1.0577
Previous Weekly High1.0705
Previous Weekly Low1.0536
Previous Monthly High1.1033
Previous Monthly Low1.0533
Daily Fibonacci 38.2%1.0613
Daily Fibonacci 61.8%1.0636
Daily Pivot Point S11.056
Daily Pivot Point S21.052
Daily Pivot Point S31.0464
Daily Pivot Point R11.0657
Daily Pivot Point R21.0713
Daily Pivot Point R31.0753

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

GBP/USD stays defensive near 1.3300 amid pre-Fed market caution

GBP/USD stays defensive near 1.3300 in the European session on Tuesday. The pair struggles as the US Dollar (USD) sits at monthly highs amid market caution ahead of the two-day US Federal Reserve monetary policy meeting, starting later this Tuesday.

EUR/USD hangs close to monthly lows near 1.1350 on USD strength

EUR/USD is consolidating near the monthly trough, trading near mid-1.1300s in the European morning on Tuesday, undermined by persistent US Dollar demand. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

Gold languishes below $4,050; eyes further losses as focus remains on FOMC decision
Gold (XAU/USD) maintains its offered tone through the first half of the European session on Tuesday and currently trades just below $4,050, down nearly 0.80% for the day. This follows the previous day's failure to find acceptance above the $4,100 mark and suggests that the path of least resistance for the bullion remains to the downside amid a bullish US Dollar (USD) undertone.
Bitcoin slips below $64,000 as risk-off sentiment grips markets
Bitcoin (BTC) is extending its correction, trading below $64,000 at the time of writing on Tuesday after losses of over 2.5% the previous day. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) recording a mild outflow on Monday, marking three consecutive days of withdrawals.
Indian Rupee outlook: Downtrend set to persist – Just at a slower pace
The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States (US)-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment (FII) from the Indian stock market, every event brought nothing but pain for the Indian currency.
US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.