Select Language

EUR/USD moves away from multi-week low, retakes 1.1300 ahead of Eurozone CPI/US NFP

Breaking news

EUR/USD moves away from multi-week low, retakes 1.1300 ahead of Eurozone CPI/US NFP

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.05.02 13:37
EUR/USD moves away from multi-week low, retakes 1.1300 ahead of Eurozone CPI/US NFP

update 2025.05.02 13:37

  • EUR/USD edges higher amid some repositioning ahead of the crucial Eurozone/US macro data.
  • The flash Eurozone PMI might influence the Euro ahead of the closely watched US NFP report.
  • Any significant divergence from the expected readings might infuse volatility around the pair.

The EUR/USD pair attracts some buyers during the Asian session on Friday and looks to build on the intraday move up beyond the 1.1300 round-figure mark. Spot prices, for now, seem to have snapped a three-day losing streak to over a two-week low, around the 1.1265 zone touched on Thursday, amid some repositioning trade ahead of crucial economic releases from the Eurozone and the US.

The European Central Bank (ECB) officials recently warned about downside risks to Eurozone inflation. Hence, investors will keep a close eye on the flash Eurozone Consumer Price Index (CPI). Any downside surprise will reaffirm market bets for a 25 basis points (bps) interest rate cut at the July ECB meeting. This, in turn, will weigh on the shared currency and pave the way for the resumption of the EUR/USD pair's recent pullback from the 1.1575 area, or the highest level since November 2021 touched last month.

From the US, the popularly known Nonfarm Payrolls (NFP) report is expected to show that the world's largest economy added 130K new jobs in April, down sharply from the 228K reported in the previous month. The Unemployment Rate, however, is expected to hold steady at 4.2%. Nevertheless, the crucial data might provide a fresh insight into the Federal Reserve's (Fed) policy outlook, which, in turn, will influence the US Dollar (USD) price dynamics and provide some meaningful impetus to the EUR/USD pair.

In the meantime, prospects for more aggressive policy easing by the Fed fail to assist the USD to capitalize on a three-day-old move up to a multi-week top. In fact, traders ramped up their bets that the US central bank will deliver four quarter-point rate reductions by the year-end after data released this week showed that the US economy unexpectedly contracted for the first time since 2022. This, in turn, holds back the USD bulls from placing fresh bets, which, in turn, is seen acting as a tailwind for the EUR/USD pair.

Economic Indicator

Core Harmonized Index of Consumer Prices (YoY)

The Core Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, - released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The YoY reading compares prices in the reference month to a year earlier. Core HICP excludes volatile components like food, energy, alcohol, and tobacco. The Core HICP is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

Read more.

Next release: Fri May 02, 2025 09:00 (Prel)

Frequency: Monthly

Consensus: 2.5%

Previous: 2.4%

Source: Eurostat


Date

Created

 : 2025.05.02

Update

Last updated

 : 2025.05.02

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

USD/CAD strengthens above 1.3800 ahead of US GDP release

The USD/CAD pair edges higher to near 1.3835 during the early Asian session on Thursday, bolstered by a stronger US Dollar (USD).
New
update2025.05.29 08:22

GBP/USD hits a second day of downside ahead of key US data

GBP/USD pared further gains on Wednesday, stumbling for a second straight session and easing back below 1.3500 after a failed attempt to recapture 1.3600 earlier this week.
New
update2025.05.29 08:18

RBNZ's Hawkesby sees near term growth headwinds

Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby said on Thursday that he sees near-term growth headwinds.
New
update2025.05.29 07:51

US Treasury yields climb as minutes. highlight Fed wait-and-see mode

US Treasury yields climbed on Wednesday following the release of the latest Federal Reserve meeting minutes from May 6-7, which revealed the US central bank's concerns about tariffs and their impact on inflation and economic activity.
New
update2025.05.29 05:45

USD/CHF Price Forecast: Stalls below 0.8300 after Fed minutes

The USD/CHF halts its advance after posting back-to-back days of gains that pushed the pair to its weekly high of 0.8290; yet, buyers remain in charge, even though the major is near its opening price at 0.8270.
New
update2025.05.29 04:49

Banxico Quarterly Report: Sheds 2025 GDP growth to 0.1%, further easing eyed

Banco de México revealed its Quarterly Report for January -March 2025, in which the central bank revised its Gross Domestic Product (GDP) forecasts for 2025 and 2026 downward, compared to the last report of 2024.
New
update2025.05.29 04:11

Forex Today: US GDP, employment data and Fedspeak next on tap

The US Dollar (USD) maintained its bullish bias unchanged for the second day in a row on Wednesday amid steady optimism on the trade front, while a cautious tone from the FOMC Minutes also collaborated with the daily advance.
New
update2025.05.29 04:11

EUR/USD slips below 1.13 as Fed turns cautious amid looming stagflationary risk

The EUR/USD retreats below 1.1300 during the North American session as the US Dollar (USD) remains bid ahead following the release of the latest Federal Reserve (Fed) meeting minutes. High US bond yields and a slightly sour mood have driven the Greenback higher against most G7 currencies.
New
update2025.05.29 03:48

Dow Jones Industrial Average coils as equities snub Fed Meeting Minutes

The Dow Jones Industrial Average (DJIA) is slightly lower on Wednesday, easing to intraday lows near 42,150 as equity traders await key earnings reports from tech heavyweight Nvidia (NVDA).
New
update2025.05.29 03:45

US Dollar Index jitters as Fed Meeting Minutes reveal increasingly-cautious Fed

The latest Meeting Minutes from the Federal Reserve's (Fed) Federal Open Market Committee (FOMC) rate meeting on May 6-7 indicate a historically rooted wait-and-see approach. At this meeting, policymakers observed that the US Dollar's (USD) status as a safe haven has recently diminished.
New
update2025.05.29 03:23

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