- EUR/USD finds pressure for sale near 1.1360, because the American dollar attracts offers after issuing data of ISM USM PMI services in April/
- ECB is expected to continue to reduce interest rates despite the boost in the euro area inflation in April.
- This week, the Fed will announce its monetary policy on Wednesday.
EUR/USD faces the pressure near the endowing of 1,1340 in North American commercial hours on Monday. The main currency pair tries to expand their endothelial movement, because the US dollar (USD) attracts offers after releasing the surprisingly bullish data of ISM Services Pervices Index managers index (PMI) in April. ISM PMI services have been higher is 51.6 than 50.8, which indicates a sturdy growth. While economists expected the data to be lower at 50.6.
In addition, the indicator of fresh orders in the service sector has also expanded to 52.3 faster than the previous version 50.4. The employment rate dropped at a moderate pace to 49.0 from 46.2 in March. The comprehensive efficiency of data of PMI services brought offers for the American dollar.
Earlier on that day, the US dollar stood in the face of intensive sales of lasting uncertainty towards US-China’s commercial relations, and when investors become cautious before announcing the monetary policy of the Federal Reserve (FED) on Wednesday.
American dollar index (DXY), which follows the Greenback value compared to the six main currencies, falls to almost 99.50, but trades in Friday’s range.
At the weekend, US President Donald Trump expressed trust, talking to reporters that double -sided trade agreements with some of his trading partners can be announced this week. However, Confirmed that there is no dialogue with the Chinese leader of the 11th Jinping this weekBut no ongoing professional discussions were denied between officials from both nations.
While the announcement of two -sided trade agreements by Washington would indicate that the fears of the tariffs proposed by the US President Trump reached the peak, long -lasting disputes between the two largest powers in the world will continue to keep investors on their fingers.
This week, the main trigger of the American dollar will be a monetary policy of the Federal Reserve (FED), which will be announced on Wednesday. The Fed is widely expected to leave interest rates unchanged in the range of 4.25%-4.50%. Therefore, investors will pay special attention to the declaration of monetary policy and the chairman of the FED, Jerome Powell to obtain tips on the interest rate.
Better than expected Non -Farmy payroll (NFP) Data for April and increased Expectations of consumer inflation In the face of Donald Trump’s tariff policy, it will be a limiting factor for the FED to lower interest rates.
EUR/USD profits, while the higher HICP in the euro area does not affect the EBC plants
- EUR/USD at the expense of the US dollar (USD). Euro (EUR) is generally trading flat, while traders are becoming more and more convinced that European Central Bank (EBC) will again reduce interest rates at the June politics meeting despite the hotter than the expected harmonized euro zone indicator in April.
- The data showed on Friday that the basic HICP – which excludes unstable ingredients, such as food, energy, alcohol and tobacco – increased at a faster rate of 2.7% compared to 2.5% estimates and the reading of the march 2.4%. At the same time, the HICP header constantly increased by 2.2% a year, faster than estimates at 2.1%.
- Traders still focus on greater reduction of interest rates from the ECB, because they are more concerned about the economic perspective in the euro area due to the precipitation of Donald Trump’s protectiveist policy than a tiny boost in inflationary pressure.
- On Friday, ECB vice president Luis de Guindos expressed confidence in the interview with the Die Presse newspaper in Austria that the central bank could still reduce interest rates, said Reuters. “It depends on the development of inflation. But we can be optimistic here,” said De Guindos, after asking how long ECB will continue to reduce interest rates.
- In European commercial hours, the trust in investors in the euro area improved to -8.1 in May following April -19.5, despite the growing economic risk on the part of Trump’s international policy.
Euro price today
The table below shows the percentage change in the euro (EUR) in relation to the main currencies. The euro was the strongest in relation to the Canadian dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.39% | -0.70% | 0.19% | -0.31% | -0.48% | -0.50% | |
| EUR | 0.14% | 0.03% | -0.29% | 0.61% | 0.11% | -0.06% | -0.09% | |
| GBP | 0.39% | -0.03% | -0.55% | 0.58% | 0.08% | -0.09% | -0.11% | |
| JPy | 0.70% | 0.29% | 0.55% | 0.90% | 0.41% | 0.31% | 0.31% | |
| BOOR | -0.19% | -0.61% | -0.58% | -0.90% | -0.79% | -0.67% | -0.69% | |
| Aud | 0.31% | -0.11% | -0.08% | -0.41% | 0.79% | -0.17% | -0.20% | |
| NZD | 0.48% | 0.06% | 0.09% | -0.31% | 0.67% | 0.17% | -0.03% | |
| CHF | 0.50% | 0.09% | 0.11% | -0.31% | 0.69% | 0.20% | 0.03% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose the euro on the left column and go along the horizontal line to the American dollar, the percentage shift displayed in the field will represent the EUR (base)/USD (quote).
Technical analysis: EUR/USD has a key 20-day EMA
EUR/USD It has recovery above a key level of 1.1300 on Monday from the three -week lowest level of 1.1265 published on Thursday. The main currency pair affected after attracting offers near the 20-day interpretation of the movable medium (EMA) around 1.1260.
The 14-day relative strength indicator (RSI) is in the range of 40.00-60.00, which indicates that the stubborn momentum has been completed at the moment. 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.
Economic indicator
ISM PMI services
. Institute for Supply Management (ISM) The index of service purchases (PMI), issued every month, is a leading indicator of business activity in the American Services sector, which is the majority of the economy. The indicator was obtained from a survey conducted by the US Direction based on information collected in its organizations. The survey answers reflect the change, if at all, this month compared to the previous month. Reading above 50 indicates that the service economy is generally developing, a stubborn sign for the American dollar (USD). Reading below 50 signals that the activity of the service sector is generally falling, which is perceived as a bear -bearing for USD.
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