EUR/USD trades with negative bias around 1.1730 amid recovering USD; downside seems limited
- EUR/USD edges lower during the Asian session on Monday amid a modest USD uptick.
- The divergent Fed-ECB expectations might continue to act as a tailwind for spot prices.
- Traders also seem reluctant ahead of the key US NFP report and ECB meeting this week.
The EUR/USD pair kicks off the new week on a softer note, though it remains within striking distance of the highest level since early October, touched last Thursday. Spot prices currently trade around the 1.1730 region, down less than 0.10% for the day.
The US Dollar (USD) edges higher during the Asian session on Monday and looks to build on last week's modest bounce from an over two-month low, which, in turn, is seen acting as a headwind for the EUR/USD pair. The USD uptick, however, lacks any obvious fundamental catalyst and is more likely to remain capped in the wake of dovish Federal Reserve (Fed) expectations.
The US central bank last week signaled caution about further cuts after lowering borrowing costs for the third time this year. Traders, however, are still pricing in a greater possibility of two more rate cuts next year as signs of a weakening labor market are becoming increasingly evident. The prospect of a Trump-aligned Fed chair might keep a lid on the attempted USD recovery.
US President Donald Trump said that he had narrowed the list of contenders to replace Jerome Powell as the next Fed chair and expects his nominee to deliver interest-rate cuts. Trump's chief economic adviser, Kevin Hassett, is seen as the likely choice to succeed the current Fed chief. This might hold back the USD bulls from placing aggressive bets and support the EUR/USD pair.
The shared currency, on the other hand, continues to draw support from the growing acceptance that the European Central Bank (ECB) is done cutting interest rates. Traders, however, seem reluctant and opt to wait for the crucial ECB meeting on Thursday. Moreover, the delayed US Nonfarm Payrolls (NFP) report on Tuesday should provide a fresh impetus to the EUR/USD pair.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | 0.03% | 0.06% | 0.04% | 0.08% | 0.02% | 0.04% | |
| EUR | -0.07% | -0.04% | 0.00% | -0.04% | 0.00% | -0.05% | -0.03% | |
| GBP | -0.03% | 0.04% | 0.04% | -0.00% | 0.04% | -0.01% | 0.00% | |
| JPY | -0.06% | 0.00% | -0.04% | -0.02% | 0.02% | -0.04% | -0.02% | |
| CAD | -0.04% | 0.04% | 0.00% | 0.02% | 0.04% | -0.02% | 0.00% | |
| AUD | -0.08% | -0.01% | -0.04% | -0.02% | -0.04% | -0.06% | -0.06% | |
| NZD | -0.02% | 0.05% | 0.01% | 0.04% | 0.02% | 0.06% | 0.02% | |
| CHF | -0.04% | 0.03% | -0.01% | 0.02% | -0.01% | 0.06% | -0.02% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
