- The Euro is seeing gains across the major currency board amidst US market holiday.
- European Industrial Production declined in November, but it was still highest print in three months.
- ECB President Lagarde due to appear several times at Davos World Economic Forum.
The Euro (EUR) is in the green against its major currency pairs, taking top spot as one of the best-performing currencies in Monday trading. Despite broad-base recovery momentum behind the Euro, the US Dollar (USD) is giving only slim ground up to the EUR on Monday, with US markets shuttered in observance of Martin Luther King Day.
European Industrial Production declined again in November, but no less than market forecasts were expecting, and this week’s major data threat for EUR traders will be a smattering of appearances by European Central Bank (ECB) President Christine Lagarde at the World Economic Forum hosted in Davos, Switzerland.
Daily digest market movers: Euro wins the Monday market as it turns green across the board
- Euro is broadly higher against the rest of the major currencies for Monday trading.
- European Industrial Production in November declined as much as expected, hitting a three-month high of -0.3% compared to the previous month’s -0.7%.
- The unadjusted euro area Trade Balance rose to an eight-month high of €20.3 billion in November compared to the previous month’s €11.4 billion as declines in Imports outpace shrinking Exports.
- Intra-euro area trade also fell in November by 9.4% YoY.
- Final Harmonized Index of Consumer Prices (HICP) figures due on Wednesday.
- US Retail Sales data due in the mid-week, markets hoping for an uptick from 0.3% to 0.4% MoM in December.
- ECB President Lagarde due to make several appearances at the World Economic Forum in Davos.
- ECB President Lagarde will participate in a town hall titled “How to Trust Economics” on Wednesday, followed by Thursday’s "Uniting Europe's Markets" panel discussion.
- Friday rounds out President Lagarde’s appearances with her participation in another panel discussion titled “The Global Economic Outlook”.
- European equities decline as heads of state kick of global Davos meet-and-greet
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.05% | 0.05% | 0.13% | 0.42% | 0.38% | 0.52% | 0.27% | |
| EUR | 0.04% | 0.11% | 0.16% | 0.46% | 0.42% | 0.57% | 0.31% | |
| GBP | -0.07% | -0.11% | 0.12% | 0.45% | 0.32% | 0.54% | 0.23% | |
| CAD | -0.13% | -0.17% | -0.07% | 0.29% | 0.26% | 0.39% | 0.14% | |
| AUD | -0.45% | -0.49% | -0.38% | -0.31% | -0.05% | 0.08% | -0.17% | |
| JPY | -0.39% | -0.42% | -0.46% | -0.25% | 0.06% | 0.11% | -0.10% | |
| NZD | -0.53% | -0.59% | -0.48% | -0.40% | -0.11% | -0.10% | -0.24% | |
| CHF | -0.29% | -0.33% | -0.22% | -0.16% | 0.13% | 0.11% | 0.23% |
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 Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Technical Analysis: Euro gains across the board, but EUR/USD remains tepid on Monday
The Euro (EUR) is in the green across the major currency bloc, gaining around six-tenths of a percent against the New Zealand Dollar (NZD) and half a percent against the Japanese Yen (JPY) and the Australian Dollar (AUD).
Momentum is notably thin for the Euro against the US Dollar, with the EUR/USD pair up a scant 0.05% on Monday.
The EUR/USD has consolidated firmly into the 200-hour Simple Moving Average (SMA) near 1.0950, keeping the pair trapped below the 50-day SMA near 1.0960 as the pair slumps into the midrange. The EUR/USD remains capped by the 1.1000 major handle in the near-term as 2024 develops into a sideways grind.
Daily candlesticks suggest that downside may be limited moving forward, with the pair sticking to chart territory north of the 200-day SMA at 1.0850, with a rising 50-day SMA putting technical pressure on the EUR/USD from below. The 50-day SMA has confirmed a bullish cross of the 200-day SMA and is pressing into the 1.0900 handle, propping up prices as the pair holds to a pattern of higher lows from October’s bottom bids near 1.0450.
EUR/USD Hourly Chart
EUR/USD Daily Chart
Euro FAQs
What is the Euro?
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
What is the ECB and how does it impact the Euro?
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
How does inflation data impact the value of the Euro?
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
How does economic data influence the value of the Euro?
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
How does the Trade Balance impact the Euro?
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes above 1.1350 on Easter Friday
EUR/USD enters a consolidation phase above 1.1350 on Friday as the trading action remains subdued, with major markets remaining closed in observance of the Easter Holiday. On Thursday, the European Central Bank (ECB) announced it cut key rates by 25 bps, as expected.
GBP/USD fluctuates below 1.3300, looks to post weekly gains
After setting a new multi-month high near 1.3300 earlier in the week, GBP/USD trades in a narrow band at around 1.32700 on Friday and remains on track to end the week in positive territory. Markets turn quiet on Friday as trading conditions thin out on Easter Holiday.
Gold ends week with impressive gains above $3,300
Gold retreated slightly from the all-time high it touched at $3,357 early Thursday but still gained more than 2% for the week after settling at $3,327. The uncertainty surrounding US-China trade relations caused markets to adopt a cautious stance, boosting safe-haven demand for Gold.
How SEC-Ripple case and ETF prospects could shape XRP’s future
Ripple consolidated above the pivotal $2.00 level while trading at $2.05 at the time of writing on Friday, reflecting neutral sentiment across the crypto market.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.