|

EUR/USD stabilizes near 1.1720 as US Dollar eases after UoM survey

  • EUR/USD rebounds from intraday lows near 1.1700 but remains under pressure.
  • UoM Consumer Sentiment drops to 55.4, missing estimates and marking a four-month low.
  • Russia and Belarus launched the Zapad-2025 military drills on Friday, prompting Poland to close border crossings with Belarus.

The Euro (EUR) trades on the back foot against the US Dollar (USD) on Friday, with EUR/USD hovering around 1.1720, stabilizing after dipping to intraday lows near 1.1700.

The mild recovery comes as the Greenback eases from session highs after the University of Michigan’s preliminary September survey revealed weakening consumer confidence alongside sticky inflation expectations.

The headline Consumer Sentiment Index fell to 55.4 in September, down from 58.2 in August and missing the market forecast of 58, marking the weakest reading since May. The Consumer Expectations Index slipped to 51.8 from 55.9, undershooting expectations of 54.9, while the Current Conditions gauge eased to 61.2 from 61.7.

On the inflation front, the one-year outlook remained unchanged at 4.8%, but the five-year measure climbed to 3.9% from 3.5%, highlighting persistent long-term price concerns. The data reinforced the view that US households are increasingly worried about the economic outlook, even as inflation expectations stay uncomfortably high.

The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, trades near 97.67, retreating from an intraday high of 97.86. While off its peak, the index remains broadly firm, keeping the Euro’s recovery attempts limited.

Across the Atlantic, the Euro faces its own set of challenges. The European Central Bank (ECB) left rates unchanged on Thursday, with policymakers striking a cautious tone amid stagnant growth and softening inflation.

At the same time, the security environment in Eastern Europe has deteriorated after around 19 Russian drones entered Polish airspace earlier in the week, while on Friday, Moscow and Minsk launched the large-scale Zapad-2025 joint military exercises. In response, Poland closed border crossings with Belarus and deployed roughly 40,000 additional troops to its eastern frontier.

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks
Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.
Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.