The Euro’s Recent Performance
- EUR/USD trades near 1.0550 following previous week’s sharp decline.
- The pair remains technically bearish in the short term despite stabilizing.
- ECB President Lagarde will deliver a speech later in the day.
The EUR/USD pair experienced a significant drop of nearly 1.7% last week, settling around 1.0550. While the pair has entered a consolidation phase at the start of this week, it retains a bearish outlook in the near term.
Euro’s Performance Against Major Currencies
The table below displays the percentage changes of the Euro (EUR) against major currencies over the last 7 days. Notably, the Euro exhibited weakness against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
The heat map above illustrates the percentage changes of major currencies against each other, providing insight into the Euro’s performance relative to its peers.
Recent hawkish comments from Federal Reserve (Fed) officials have led to a reevaluation of the likelihood of a further 25 basis points rate cut in December, bolstering the US Dollar (USD) and exerting downward pressure on EUR/USD.
Notable Events Impacting EUR/USD
- Chicago Fed President Austan Goolsbee is set to deliver a speech, discussing the policy outlook.
- European Central Bank (ECB) President Christine Lagarde will address “The Economic and Human Issues of a Changing Era” at an event in Paris.
Geopolitical developments, including US President Joe Biden’s authorization for Ukraine to use powerful long-range American weapons against Russia, have also influenced market sentiment and could impact currency movements.
Technical Analysis of EUR/USD
EUR/USD has shown signs of stabilization post last week’s decline, yet the technical outlook indicates a bearish trend. The pair is trading within a descending regression channel with the Relative Strength Index (RSI) below 50.
Key technical levels for EUR/USD:
- Support: 1.0500, 1.0440
- Resistance: 1.0570, 1.0600, 1.0650
Insights into the Euro
Here are some FAQs about the Euro and its significance in the global financial landscape:
- What is the Euro?: The Euro is the currency used by 19 European Union countries in the Eurozone and is the second most traded currency globally after the US Dollar.
- Role of the ECB: The European Central Bank (ECB) in Frankfurt manages the Eurozone’s monetary policy, aiming to maintain price stability through interest rate adjustments.
- Economic Indicators: Factors like inflation data, GDP, and trade balance influence the Euro’s value, impacting global investor interest and the ECB’s policy decisions.