The week started on a positive note for the EUR/USD, with the pair rebounding from last week’s lows near 1.0448, a key level dating back to April 2023.
EUR/USD is navigating a bearish phase, pressured by the stronger dollar and eurozone economic concerns. Immediate support lies at 1.0425, with resistance near 1.0500.
Picture: EUR/USD stabilises near 1.0480, rebounding from lows as it approaches resistance amid cautious market optimism, as seen on the VT Markets app.
Traders should monitor inflation data and U.S. consumer confidence figures this week, as they will likely set the next directional move for the pair.
The euro’s ability to hold above $1.05 in the short term will depend on sentiment shifts and the influence of upcoming US data. For now, EUR/USD traders remain on edge, balancing cautious optimism with persistent downside risks.
While the euro found some relief following Scott Bessent’s nomination as US Treasury Secretary, traders remain cautious as Donald Trump’s leadership is expected to maintain a focus on aggressive fiscal policies.
Bessent’s appointment has eased concerns over inflationary pressures tied to Trump’s policies, triggering a pullback in Treasury yields and offering breathing room for the euro.
The eurozone’s economic backdrop remains fragile, with weakening export demand and deteriorating business sentiment adding to the pressure.
Despite today’s pullback, the US dollar retains strong momentum. The dollar index has climbed for eight consecutive weeks, driven by expectations for Trump’s pro-growth fiscal measures.
See also: Week Ahead: Bitcoin’s Bullish Surge
This week, US economic releases, including Q3 GDP, core PCE inflation, and FOMC minutes, could steer the EUR/USD pair further, especially as the US heads into a shortened Thanksgiving week.
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