EUR/USD to consolidate around current levels this week – Danske Bank

FXStreet Insights Team FXStreet

EUR/USD has edged higher to just below the 1.05 mark, supported by renewed momentum in Ukraine peace talks, Danske Bank's FX analyst Mohamad Al-Saraf reports.

All eyes on euro area PMIs this week

"Markets largely shrugged off last week's hot US January CPI print, with tariff and geopolitical headlines driving price action instead. This week is relatively quiet on the economic data front, making it likely that political developments will continue to generate some FX volatility."

"On tariffs, there has been significant rhetoric but little immediate action, aligning with our view that Trump will ultimately underdeliver on tariffs. The broad EUR has gained support from optimism surrounding a potential resolution to the Ukraine war."

"We expect EUR/USD to consolidate around current levels this week, with the key focus on PMI releases for major economies toward the end of the week. Notably, euro area PMIs showed some positive momentum in January, and it will be important to see if this trend continues."

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