EUR/USD resumes the downside, falters ahead of 1.0200 again

EUR/USD’s upside momentum falters near the 1.0200 mark.
Final Inflation Rate in the euro area came at 8.9% in July.
US Initial Claims, Philly Fed Index take centre stage across the pond.

Pablo Piovano FXStreet

The selling pressure returns to the European currency and forces EUR/USD to give away part of the recent gains and return to the mid-1.0100s.

EUR/USD weaker on USD-buying

EUR/USD fades two consecutive daily advances and comes under pressure amidst shy losses on Thursday, all against the backdrop of some unostentatious rebound in the greenback.

Indeed, not much happening in the FX universe, as market participants refocus on upcoming US data and continue to digest Wednesday’s release of the FOMC Minutes.

The move lower in the pair also comes in tandem with further recovery in the German 10y Bund yields, which so far clinch the third consecutive daily gain near the 1.15% region.

In the euro docket, final inflation figures in the euro area showed the headline CPI rose 8.9% in the year to July and 0.1% vs. the previous month.

In the US calendar, usual weekly Claims and the Philly Fed Manufacturing Index will take centre stage seconded by the CB Leading Index, Existing Home Sales and speeches by FOMC’s George and Kashkari.

What to look for around EUR

EUR/USD now appears somewhat stabilized in the 1.0150 region against the backdrop of a firm recovery in the demand for the US dollar.

Price action around the European currency, in the meantime, is expected to closely follow dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence

On the negatives for the single currency emerge the so far increasing speculation of a potential recession in the region, which looks propped up by dwindling sentiment gauges and the incipient slowdown in some fundamentals.

Key events in the euro area this week: EMU Final Inflation Rate (Thursday).

Eminent issues on the back boiler: Continuation of the ECB hiking cycle. Italian elections in late September. Fragmentation risks amidst the ECB’s normalization of its monetary conditions. Impact of the war in Ukraine on the region’s growth prospects and inflation.

EUR/USD levels to watch

So far, spot is losing 0.14% at 1.0164 and a break below 1.0096 (weekly low July 27) would target 1.0000 (psychological level) en route to 0.9952 (2022 low July 14). On the other hand, the next up barrier comes at 1.0368 (monthly high August 10) seconded by 1.0486 (100-day SMA) and finally 1.0615 (weekly high June 27).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.