The Euro Strengthens Against the Dollar
- EUR/USD edges higher in the European session on Monday.
- 1.1200 aligns as next critical resistance for the pair.
- Fed Chairman Powell will be delivering a speech later in the day.
After ending the previous week virtually unchanged, EUR/USD gains traction in the European session and rises toward 1.1200.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
The Euro seems to be gathering strength following the regional inflation data from Germany. In September, the Consumer Price Index (CPI) in Saxony rose 0.2% on a monthly basis after declining 0.2% in August, while the CPI in Bavaria increased 0.1% in the same period.
In the early American trading hours, European Central Bank (ECB) President Christine Lagarde will testify before the European Parliament. In case Lagarde leaves the door open to a rate cut at the next policy meeting, the immediate market reaction could cause the Euro to come under pressure.
In the second half of the day, the US economic calendar will feature important data releases. Investors are likely to focus on Federal Reserve (Fed) Chairman Jerome Powell’s speech later in the day.
EUR/USD Technical Analysis
EUR/USD trades within a touching distance of 1.1200 (static level). In case the pair rises above this level and starts using it as support, it could continue to stretch higher. The Relative Strength Index (RSI) recently rose above 60, pointing to a buildup of a bullish momentum.
On the downside, 1.1160 (50-period Simple Moving Average (SMA) on the 4-hour chart, static level) aligns as first support before 1.1110-1.1100 (100-period SMA, 200-period SMA).
Euro FAQs
Here are some frequently asked questions about the Euro:
- The Euro is the currency for the 19 European Union countries that belong to the Eurozone.
- The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone.
- Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro.
- Data releases gauge the health of the economy and can impact on the Euro.
- Another significant data release for the Euro is the Trade Balance.
In conclusion, the Euro’s strength against the Dollar is influenced by various factors such as inflation data, central bank policies, economic indicators, and trade balance. Understanding these factors can help investors make informed decisions in the forex market.