EUR/USD is reflected in the dormitory when the American dollar tries to extend recovery

EUR/USD set up to almost 1.1330, because the USD index is trying to exceed the key level 100.00.
The American Dollar is in the face of pressure because of the destitute economic perspective in the US in the face of Trump’s tariff policy.
EBC officials warned that the risk of inflation is distorted to the minus.

EUR/USD regains its initial losses after going down to almost 1.1285 and flattens about 1.1330 in European commercial hours on Thursday. The main currency pair gains an American dollar indicator (DXY), which tracks the Greenback value compared to six main peers, tries to expand two -day recovery above the psychological level 100.00.

The perspective of the American dollar (USD) looks gloomy, taking into account the unexpected contraction in the United States (USA) gross domestic product (GDP), gentle escalate in employment and uncertainty of US-chin trade.

Data published on Wednesday showed that the American economy dropped by 0.3% on an annual basis, when companies reloaded imports from their foreign suppliers to avoid higher tariffs, which were announced by US President Donald Trump on the so -called “day of liberation”. For the first time in three years, the US has faced economic contraction during the quarter.

Analysts from Morgan Stanley believe that the current GDP data “does not fully reflect the actual impact of new economic policies” by the US President Trump, and warn against “slower increase in work, increase in inflation and a sharp slowdown in retail expenditure.”

The USA ADP announced on Wednesday that the private sector added 62,000 in April. Fresh employees, much lower than the estimates of 108 thousand. And earlier edition of 147 thousand

Meanwhile, the comments of the White House officials indicated that the US-China trade war will not be resolved in the near future. Jamiesson Greer, a representative of the US trade, in an interview with Fox News on Wednesday, that professional discussions with Beijing have not yet been initiated since the application of mutual tariffs, reports South China Morning Post (SCMP). Greer explained that no official discussions with Beijing are “in progress.”

Daily Digest Market Movers: EUR/USD collections as euro outweigh

The intraraday recovery movement in Parie EUR/USD is also driven by surpassing the euro towards its peers on Thursday, despite the expectations that the European Central Bank (EBC) will reduce interest rates at the June politics meeting. Traders are becoming more and more convinced that the ECB will lower the deposit rate by 25 base points (BPS) to 2%, because many officials have warned about the inheritance risk for inflation in the euro area.
EBC officials have expressed that inflation in the euro area may emphasize the goal of a central bank of 2%. EBC decision -makers believe that the growth will be seriously hit by the falling of the tariff by the US President Trump and that its impact will be “disinflastic net” for the continent.
In the case of fresh tips on inflation, investors are waiting for a preliminary harmonized euro area indicator with a harmonized euro area zone (HICP) in April, which will be issued on Friday. According to estimates, the HICP headline increased at a moderate pace by 2.1% a year, slightly lower than an escalate of 2.2% observed in March. At the same time, the basic HICP, which excludes unstable elements such as food, energy, alcohol and tobacco, should escalate at a faster pace by 2.5% compared to the earlier reading of 2.4%.
Before HICP in the euro area, inflationary data from the main Member States indicated that price pressure cooled in Germany and France, but remained stable in Spain and Italy.
Meanwhile, GDP from the Eury Flash zone was stronger than expected on both quarterly and annual basis. Eurostat announced that the economy increased by 0.4% a quarter to the quarter, higher than expected economists and previous 0.2% readings. However, the Q1 GDP data does not yet reflect the impact of tariffs on the part of the US President Trump on cars.

Technical analysis: EUR/USD is intended to maintain 1,300

EUR/USD tries to maintain a key level of 1.1300 in the Thursday European session. The pair reflects after the average inversion to a 20-day interpretation average (EMA), which trads around 1.1250.

The 14-day relative strength indicator (RSI) is in the range of 40.00-60.00, which indicates that the stubborn shoot is so far. However, growth prejudices still prevail.

Looking up, the psychological level 1.1500 will be the main resistance to the couple. And vice versa, the highest level of September 25 1.1214 will be a key support for the euro bulls.

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 escalate 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 constant 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 crucial 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.