Select Language

EUR/USD looks to build on recovery from multi-week low; holds steady below mid-1.0800s

Breaking news

EUR/USD looks to build on recovery from multi-week low; holds steady below mid-1.0800s

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.31 09:49
EUR/USD looks to build on recovery from multi-week low; holds steady below mid-1.0800s

update 2025.03.31 09:49

  • EUR/USD turns positive for the third straight day amid a broadly weaker USD. 
  • Friday's US PCE data fueled stagflation fears and continues to weigh on the buck.
  • Trade war fears could limit USD losses and cap the pair ahead of German CPI.

The EUR/USD pair attracts some dip-buyers following an Asian session dip to the 1.0800 neighborhood and looks to build on its bounce from a multi-week low touched last Thursday. The uptick, however, lacks bullish conviction, with spot prices currently trading near the 1.0835 region, unchanged for the day.

The US Dollar (USD) remains under some selling pressure for the third straight day amid the risk of stagflation in the US and turns out to be a key factor acting as a tailwind for the EUR/USD pair. The USD bulls seem rather unimpressed by signs of rising inflation, which might hold back the Federal Reserve (Fed) from resuming its rate-cutting cycle in June. In fact, the US Personal Consumption Expenditure (PCE) Price Index released on Friday showed that the core gauge that excludes volatile food and energy prices rose 0.4% in February, marking the biggest monthly gain since January 2024 and lifting the yearly rate to 2.8%. 

Adding to this, the University of Michigan survey showed that 12-month inflation expectations soared to the highest level in nearly 2-1/2 years during March. This overshadowed Consumer Spending data, which accelerated 0.4% last month after a downwardly revised 0.3% decline in January. This comes on top of the uncertainty over US President Donald Trump's trade policies and should allow the Fed to adopt a  'wait-and-see' approach towards easing monetary policy further. The outlook, however, does little to provide any meaningful impetus to the Greenback or exert any downward pressure on the EUR/USD pair. 

The shared currency, on the other hand, seems to draw support from easing EU-US trade war concerns. In fact, the European Commission (EC) signaled that it has prepared concessions for the US to escape Trump's so-called reciprocal tariffs, which he will announce on Wednesday. However, the prevalent risk-off mood could offer some support to the safe-haven buck and cap the upside for the EUR/USD pair. Traders now look forward to the release of the prelim German consumer inflation figures for some impetus. The fundamental backdrop, meanwhile, supports prospects for a further appreciating move for the pair.

Economic Indicator

Consumer Price Index (YoY)

The Consumer Price Index (CPI), released by the German statistics office Destatis on a monthly basis, measures the average price change for all goods and services purchased by households for consumption purposes. The CPI is the main indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is bullish for the Euro (EUR), while a low reading is bearish.

Read more.

Next release: Mon Mar 31, 2025 12:00 (Prel)

Frequency: Monthly

Consensus: -

Previous: 2.3%

Source: Federal Statistics Office of Germany

 


Date

Created

 : 2025.03.31

Update

Last updated

 : 2025.03.31

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

BoE's Greene: Pricing partly reflects global factors

Bank of England (BoE) policymaker Megan Greene said on Tuesday that "pricing partly reflects global factors."
New
update2025.04.22 18:13

Oil caught up in risk-off move - ING

Oil, though, was unable to escape the broader risk-off move in markets yesterday. ICE Brent settled 2.5% lower on the day, ING's commodity experts Ewa Manthey and Warren Patterson note
New
update2025.04.22 18:08

CAD: Downside risks still prevail - Commerzbank

USD/CAD has fallen significantly in recent weeks. However, this was due to pronounced USD weakness rather than CAD strength. If the US dollar recovers, we are likely to see higher levels again.
New
update2025.04.22 18:04

USD/CAD maintains losses near 1.3800, six-month lows due to higher Oil prices

USD/CAD continues to slide for the second consecutive day, trading near 1.3810 during Tuesday's European session. The Canadian Dollar (CAD) gains traction, buoyed by a rebound in crude Oil prices and broader macroeconomic factors.
New
update2025.04.22 17:59

TRY: Re-establishing credibility is always difficult - Commerzbank

Last Thursday, Turkey's central bank (CBT) surprised markets by raising its main policy rate from 42.5% to 46.0%. Simultaneously, it increased the overnight lending rate to 49%, and the overnight borrowing rate to 44.5%.
New
update2025.04.22 17:57

Gold price up over 10% in April, hits $3,500 on Fed spat turmoil

Gold price (XAU/USD) shows no signs of fatigue and extends its rally higher yet again, hitting another record high at $3,500 in early Asian trading on Tuesday.
New
update2025.04.22 17:52

JPY: Strong position - ING

The Japanese Yen (JPY) is the biggest winner in this latest round of USD selling, as it responds to both the equity slump and the risks of the Fed's independence.
New
update2025.04.22 17:50

GBP/JPY: Pound Sterling cross rates mixed at the start of the European session

Pound Sterling (GBP) crosses trade mixed at the start of Tuesday, according to FXStreet data. The Pound Sterling (GBP) to the Japanese Yen changes hands at 188.02, with the GBP/JPY pair declining from its previous close at 188.44.
New
update2025.04.22 17:50

JPY: Strength mainly vs. the USD - Commerzbank

The Japanese yen continued to strengthen against the US dollar over the holiday weekend, with the USD/JPY approaching 140 this morning.
New
update2025.04.22 17:48

USD: Confidence crisis extends - ING

US Dollar (USD) losses of the past few weeks have been a combination of mounting US growth concerns and a loss of confidence in the dollar as a safe haven. The round of USD weakness seen on Easter Monday belongs to both trends.
New
update2025.04.22 17:43

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel