EUR/USD Holds Steady Near 1.0500 After Strong Gains
- EUR/USD holds steady near 1.0500 after posting strong gains on Thursday.
- Investors await preliminary February PMI data from Germany, the Eurozone, and the US.
- Profit-taking ahead of the German election could ramp up the pair’s volatility heading into the weekend.
The EUR/USD currency pair showed bullish momentum and surged above 1.0500 on Thursday, with the US Dollar (USD) facing significant selling pressure. As of Friday morning in Europe, the pair remains steady around 1.0500 as investors look forward to the release of preliminary February Purchasing Managers’ Index (PMI) data.
Euro Price This Week
The table below displays the percentage change of the Euro (EUR) against major currencies for the current week. Notably, the Euro performed strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.68% | -1.07% | 0.06% | -0.61% | -0.72% | -0.14% |
The USD Index, tracking the USD’s value against major currencies, fell sharply on Thursday due to a rise in weekly Initial Jobless Claims and a drop in the 10-year US Treasury bond yield below 4.5%, further pressuring the USD.
Key Factors Affecting EUR/USD
- HCOB Composite PMI data from Germany and the Eurozone expected to show continued business expansion.
- Publication of Manufacturing and Services PMI reports for the US by S&P Global later in the day.
- Upcoming German general election on February 23 may lead to profit-taking in EUR/USD.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) on the 4-hour chart indicates a bullish bias for EUR/USD. Resistance levels include 1.0500-1.0510, 1.0550, and 1.0600, while support levels are at 1.0440, 1.0390-1.0400, and 1.0375.
Euro FAQs
Analysis:
The EUR/USD pair’s stability near 1.0500 reflects the recent bullish sentiment driven by USD weakness. Investors are closely monitoring PMI data releases and the upcoming German election for potential impact on market volatility. Technical analysis suggests key resistance and support levels for traders to consider.
Understanding the factors influencing EUR/USD movements, such as economic data releases and geopolitical events, is crucial for investors looking to navigate currency markets effectively. Keeping abreast of developments in major economies and central bank policies can help individuals make informed decisions regarding their investments and financial future.