- Euro edge higher among the pressure of the American dollar after the White House pushes the tariff to Chinese ships, fueling global trade risk.
- Trump was supposedly furious with the chairman of the Fed Powell; The advisor says that the president browsing the legality of the exemption.
- Muller ECB claims that lower energy and tariff prices justify the reduction of the rate, although it warns the fragmentation may forward.
Euro (EUR) proof of American dollar (USD) in subdued trade, because the financial markets are closed on Good Friday. At the time of writing, the EUR/USD trades at 1.1385, which is an enhance of 0.21%, not having the strength to break the elusive sign 1.14.
EUR/USD up by 0.21% in holiday trade, because markets digest fees for shipping USA-chin and renewed fears regarding FED independence
The narrative of financial markets is focused on controversial United States (USA) trade policies, which caused the prices to drop Greenback in favor of other G8 FX peers, such as the common currency.
Despite this, the White House is moving forward with imposing fees on Chinese ships on American ports that would threaten with shocking global shipping routes and escalation of the trade war between China and the USA.
On Thursday, Breaking News revealed that President Trump was incensed as the chairman of the Federal Reserve (FED) Jerome Powell and thinking about his overthrow. Although market participants did not react to the headline, the recently senior adviser to the White House Kevin Hassett insisted that “Trump study whether the reason is an option.”
In the meantime American dollar index (DXY), which tracks Buck performance in relation to the basket of six other currencies, drops 0.09%to 99.31.
In the case of the Madis Müller news flow airy, the European Central Bank (EBC) revealed that a decrease in energy prices and tariffs supported the rate reduction. He added that the police are not a limitation and a key indicators They move in the right direction. He also pointed out that a more fragmented economy could raise prices.
EUR/USD price forecast: Technical perspectives
EUR/USD trades near the top of the current week near 1.1400, and the price campaign shows that the euro is able to extend its profits next to this area, opening the door to further growth. The key levels of resistance are on April 11 at 1.1473, followed by 1,1498, peak of February 2022, before the drawing 1,1500.
FAQ euro
The euro is the currency of 19 European Union countries, which belong to the euro area. This is the second most frequently commercial currency in the world behind the American dollar. In 2022, it accounted for 31% of all currency transactions, with an average daily turnover of over USD 2.2 trillion per day. EUR/USD is the most rotating currency pair in the world, which is about a 30%discount on all transactions, followed by EUR/JPy (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (EBC) in Frankfurt, Germany is a bank reserve bank. EBC sets interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means either controlling inflation or stimulating growth. Its main tool is to enhance or reduce interest rates. Relatively high interest rates – or waiting for higher feet – will usually bring the benefits of the euro and vice versa. The ECB Managing Council makes decisions regarding monetary policy at meetings taking place eight times a year. Decisions are made by the heads of national banks of the euro area and six enduring members, including the President of EBC, Christine Lagarde.
Data on inflation in the euro area, measured by a harmonized consumer price indicator (HICP), are an essential econometric for the euro. If inflation increases more than expected, especially if it is above the target 2% EBC, it obliges EBC to raise interest rates to restore it to control. Relatively high interest rates compared to its counterparts will usually benefit the euro, because it makes the region more attractive as a place for global investors to park their money.
The data release the health of the economy and can affect the euro. Indicators such as GDP, PMI production and services, surveys regarding employment and consumer moods can affect the direction of the common currency. A forceful economy is good for the euro. It not only attracts more foreign investment, but can encourage EBC to set interest rates, which will directly strengthen the euro. Otherwise, if economic data is tender, the euro will probably fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are particularly significant because they constitute 75% of the euro area economy.
Another significant issue of data for the euro is the commercial balance. This indicator measures the difference between what the country earns on exports and what spends on imports in a given period. If the country generates a highly sought after export, its currency will gain value only from additional demand created by foreign buyers trying to buy these goods. Therefore, a positive net trade balance strengthens currency and vice versa for a negative balance.
