|

EUR/USD steadies around 1.0300 as US Dollar remains subdued ahead of US CPI

  • EUR/USD maintains its position following reports of the incoming Trump administration considering gradual tariff hikes.
  • The US Dollar depreciated following the disappointing US December PPI data; CPI inflation data is due later on Wednesday.
  • ECB officials continue to strengthen expectations of additional policy easing, fueled by the ongoing weak economic outlook in the Eurozone.

EUR/USD remains steady following recent gains registered in the previous session, trading around 1.0300 during the Asian hours on Wednesday. The pair received support as the market sentiment is improved due to recent reports about US President-elect Donald Trump's economic team considering a gradual increase in import tariffs boosted investor confidence, per Bloomberg.

The US Dollar Index (DXY), which measures the US Dollar’s performance against six major currencies, trades near 109.20. The Greenback faced challenges following the disappointing US December Producer Price Index (PPI) data. Market participants will keep an eye on the US Consumer Price Index (CPI) inflation data, which is due later on Wednesday.

US Producer Price Index for final demand rose 0.2% month-over-month in December after a 0.4% advance in November, softer than the 0.3% expected. The PPI climbed 3.3% YoY in December, the most since February 2023, after increasing 3.0% in November. This reading came in below the consensus of 3.4%.

The US Dollar may regain strength as hawkish sentiment builds around the Federal Reserve’s (Fed) policy outlook for January. According to the CME FedWatch tool, 30-day Fed Funds futures indicate a higher likelihood of just one interest rate cut from the Fed this year, contrasting with the two cuts projected in the Fed's latest dot plot from the Summary of Economic Projections (SEP).

The EUR/USD pair may face additional downward pressure as European Central Bank (ECB) officials continue to reinforce market expectations of further policy easing, driven by the Eurozone's weak economic outlook.

At a conference on Monday, ECB policymaker and Bank of Finland Governor Olli Rehn stated that he anticipates monetary policy will exit restrictive territory within the coming months, likely by “midsummer.”

Euro PRICE Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.02%0.03%-0.28%-0.03%-0.05%-0.10%-0.04%
EUR-0.02% 0.01%-0.29%-0.06%-0.07%-0.12%-0.06%
GBP-0.03%-0.01% -0.33%-0.06%-0.08%-0.14%-0.06%
JPY0.28%0.29%0.33% 0.26%0.23%0.17%0.25%
CAD0.03%0.06%0.06%-0.26% -0.03%-0.07%-0.01%
AUD0.05%0.07%0.08%-0.23%0.03% -0.05%0.02%
NZD0.10%0.12%0.14%-0.17%0.07%0.05% 0.07%
CHF0.04%0.06%0.06%-0.25%0.00%-0.02%-0.07% 

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

More from Akhtar Faruqui
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.