EUR/USD remains near highs awaiting flash PMI readings from the US

EUR/USD has seen moderate losses, trading just above 1.1730 at the time of writing on Friday, but retaining most of the previous day’s gains and on track for its best weekly performance since June. The preliminary purchasing managers’ index (PMI) for the euro zone failed to provide any significant support for the euro (EUR), but the pair remains near multi-week highs, supported by the feeble US dollar (USD) as attention turns to US S&P global PMIs.

US President Trump’s obsession with Greenland and strained US-Europe relations have drawn attention this week, causing the value of the dollar to plummet across the board. Trump said on social media that he had secured full and indefinite access to the Arctic island in agreement with the North Atlantic Treaty Organization (NATO) after speaking at the World Economic Forum in Davos, where he withdrew the operate of military action against NATO allies and withdrew threats to impose tariffs on eurozone countries.

On the macroeconomic front, third-quarter U.S. gross domestic product (GDP) data beat expectations on Thursday, weekly jobless claims rose less than expected, and the Personal Consumer Expenditures (PCE) price index revealed higher inflationary pressures in November. This data supports the US Federal Reserve’s (Fed) view of stable interest rates, but the US dollar remains depressed.

Price in euro today

The table below shows the current percentage change of the euro (EUR) against the main listed currencies. The euro was strongest against the Swiss franc.

S&#038;P Global Manufacturing PMI

	USD	EUR	GBP	JPY	BOOR	AUD	NZD	CHF
USD		0.09%	-0.19%	-0.17%	-0.06%	-0.21%	0.03%	0.11%
EUR	-0.09%		-0.28%	-0.26%	-0.15%	-0.30%	-0.06%	0.01%
GBP	0.19%	0.28%		0.02%	0.13%	-0.03%	0.22%	0.29%
JPY	0.17%	0.26%	-0.02%		0.13%	-0.04%	0.20%	0.28%
BOOR	0.06%	0.15%	-0.13%	-0.13%		-0.16%	0.08%	0.16%
AUD	0.21%	0.30%	0.03%	0.04%	0.16%		0.25%	0.32%
NZD	-0.03%	0.06%	-0.22%	-0.20%	-0.08%	-0.25%		0.07%
CHF	-0.11%	-0.01%	-0.29%	-0.28%	-0.16%	-0.32%	-0.07%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Euro from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Daily Digest Market developments: EU-US tensions hit US dollar

The US dollar index (DXY) is trading near three-week lows as deterioration in relations between the US and the EU, its main trading partner, over the Greenland issue undermines confidence in the US as a world leader and the US dollar’s status as a reserve currency.
Market sentiment improved after Trump softened his tone towards the European Union, which allowed for a rebound in growth. However, transatlantic relations have been severely damaged, and the US dollar is bearing the brunt of it, at least for now.
Preliminary PMI indicators for the euro zone showed that the services sector expanded at a rate of 51.6 in January, unchanged since December, against the market consensus of 51.6. The manufacturing PMI improved to 49.4 from 48.8 in December, with expectations for a reading of 49.0 but still on track to dip below 50.
The German PMI indices published earlier on Friday turned out to be better than expected. Services sector activity improved to 53.3 from 52.7 in the previous month, above market expectations for a milder rise to 53.0. The manufacturing PMI rose to 48.7 from 47.0, above market expectations of 48.0 but also to levels indicating a recession.
Macroeconomic data from the US on Thursday supported the dollar. US GDP for Q3 was revised to an annualized 4.4% from the previous estimate of 4.3% and above the Q2 growth of 3.8%.
The U.S. PCE price index rose 2.8% year-over-year in November from 2.7% previously, in line with broad expectations. The PCE core price index showed identical results.
Additionally, the number of recent jobless claims in the US increased to 200,000 in the week of January 17. from the upwardly revised 199 thousand last week, still well below the 212,000 expected by the market.
In the US, S&P Global’s preliminary services PMI rose to 52.8 in January from 52.5 in December.

Technical Analysis: EUR/USD remains restricted below the resistance at 1.1765

EUR/USD is consolidating between the 61.8% and 72.6% Fibonacci retracement levels of the early January selloff, keeping the pair’s immediate bullish structure intact.

Technical indicators point to a subtle positive trend. The relative strength index (RSI) has held steady above 60 and the moving average convergence divergence (MACD) histogram is shrinking but still positive, overall indicating moderate bullish momentum.

On the downside, daily lows are around 1.1725, although there is no clear support ahead of Thursday’s low at 1.1670. Above the above-mentioned 1.1765 (the highs of January 2 and 20), the next target is the high of December 24, at 1.1808.

(The technical analysis for this story was written with the aid of an AI tool.)

Economic indicator

S&P Global Manufacturing PMI

The S&P Global The Manufacturing Purchasing Managers’ Index (PMI), published monthly, is a leading indicator measuring business activity in the U.S. manufacturing sector. The data comes from surveys conducted among senior executives in private sector companies in the manufacturing sector. Survey responses reflect possible changes in the current month compared to the previous month and can predict changing trends in official data series such as gross domestic product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is broadly expanding, which is a bullish signal for the US dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally withering, which is seen as bearish for the dollar.

Economic indicator

S&P Global Services PMI

The S&P Global The Services Purchasing Managers’ Index (PMI), published monthly, is a leading indicator measuring business activity in the U.S. services sector. Because the services sector dominates much of the economy, the Services PMI is an critical indicator for gauging the state of overall economic conditions. The data comes from surveys conducted among senior management in private sector companies in the service sector. Survey responses reflect possible changes in the current month compared to the previous month and can predict changing trends in official data series such as gross domestic product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the service economy is growing overall, which is a bullish sign for the US dollar (USD). Meanwhile, a reading below 50 signals that activity among service providers is generally withering, which is seen as bearish for the dollar.