Select Language

EUR/USD pulls back from highs ahead of Eurozone inflation data

Breaking news

EUR/USD pulls back from highs ahead of Eurozone inflation data

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.09.02 16:21
EUR/USD pulls back from highs ahead of Eurozone inflation data

update 2025.09.02 16:21

  • The Euro pulls back from Monday's highs, but the immediate trend remains positive.
  • Investors are bracing for a steady Eurozone inflation report due later on Tuesday.
  • The US Dollar remains vulnerable amid Trump's attacks on the Fed and hopes of rate cuts.

The EUR/USD pair is putting an end to a five-day positive streak on Tuesday and retreats from Monday's highs at 1.1735, trading right below 1.1700 at the time of writing in the European session opening. Investors are hesitating ahead of the release of the preliminary Eurozone Consumer Prices Index (CPI) figures, yet with downside attempts limited so far. The US Dollar (USD) struggles amid rising concerns about the independence of the US Federal Reserve (Fed).

Eurozone inflation is forecast to have remained steady near the European Central Bank (ECB) 2% target rate, which provides further reasons for the bank to keep interest rates steady at its September meeting. The stronger-than-expected manufacturing activity data seen on Monday and comments from ECB board member Isabel Schnabel endorse that view.

On the other hand, the war between US President Donald Trump's Government and the Fed is eroding the credibility of the last one and scaring investors away from the US Dollar (USD) at a critical moment, when the bank is about to resume its rate-cutting cycle.

Recent comments by US Treasury Secretary Scott Bessent saying that the "Fed has made a lot of mistakes" have failed to ease markets, already concerned by Trump's attempts to replace committee members with loyalist doves, which have led to a likely lengthy legal battle with Fed Governor Lisa Cook.

In the US economic calendar, manufacturing and services activity data, and the all-important Nonfarm Payrolls report, due on Friday, will be a key test for Trump's trade policies and provide further clues about September's Fed monetary policy decision.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.07% 0.15% 0.56% -0.01% 0.19% 0.27% 0.10%
EUR -0.07% 0.07% 0.50% -0.08% 0.16% 0.20% 0.03%
GBP -0.15% -0.07% 0.44% -0.15% 0.08% 0.14% -0.04%
JPY -0.56% -0.50% -0.44% -0.59% -0.39% -0.29% -0.43%
CAD 0.01% 0.08% 0.15% 0.59% 0.18% 0.32% 0.11%
AUD -0.19% -0.16% -0.08% 0.39% -0.18% 0.06% -0.11%
NZD -0.27% -0.20% -0.14% 0.29% -0.32% -0.06% -0.17%
CHF -0.10% -0.03% 0.04% 0.43% -0.11% 0.11% 0.17%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Daily digest market movers: The US Dollar might remain vulnerable ahead of key data

  • The Euro (EUR) is pulling back on Tuesday, but holds most of the ground taken over the last few days. Trump's attacks on the Fed and market expectations that the US central bank will cut interest rates later in September are keeping US bulls in check, while in Europe, solid macroeconomic figures and hawkish ECB rhetoric are likely to underpin the Euro.
  • ECB board member Isabel Schnabel affirmed on Tuesday that interest rates are "mildly accommodative" at the moment and sees no reason for further monetary easing in the near term.
  • On Monday, ECB President Christine Lagarde provided further support to the Euro, dismissing concerns about the French banking system and affirming that economic uncertainty has been "considerably reduced" in a speech suggesting that monetary policy will remain unchanged after September's meeting.
  • Recent Eurozone data support that view, as the Eurozone HCOB Manufacturing Purchasing Managers' Index (PMI) was revised up to 50.7, from the 50.5 previous estimate, confirming that the sector's activity expanded in August for the first time in the last three years.
  • Tuesday's highlight is August's preliminary Eurozone CPI release. Consumer Inflation is expected to have grown at a 2% year-on-year rate, while the core CPI is seen moderating to a 2.2% yearly reading from 2.3% in July.
  • In the US, the main attraction will be the ISM Manufacturing PMI due at 14:00 GMT, still, which is forecasted to have improved to 49 in August, from 48 in July, still at levels pointing to a contraction of the sector's activity.

Technical Analysis: EUR/USD remains in range, with 1.1740 resistance holding bulls

EUR/USD Chart

The EUR/USD near-term bias has improved, but the pair remains looking for direction within the broadly 150-pip range that has contained price action for most of August. The 4-hour Relative Strength Index (RSI) is at positive levels, at 56, but daily technical indicators suggest a frail upside momentum.

To the upside, the confluence between the descending trendline resistance, now around 1.1730 and 1.1740, which encompasses the peaks of August 13 and 22, as well as Monday's high, is likely to pose a serious challenge for bulls. A confirmation beyond here would clear the way towards the late-July lows around 1.1790, ahead of the July 1 high at 1.1830.

Bearish attempts, on the other hand, are likely to meet support at the August 29 low, around 1.1650, ahead of the bottom of the monthly range, between 1.1575 and 1.1590, which capped bears on August 11, 22, and 27. Further down, the 50% Fibonacci retracement level of the early August bullish run, at 1.1560, might provide some support ahead of the August 5 low, near 1.1530.

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: Tue Sep 02, 2025 09:00 (Prel)

Frequency: Monthly

Consensus: 2.2%

Previous: 2.3%

Source: Eurostat

Economic Indicator

Harmonized Index of Consumer Prices (YoY)

The 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. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

Read more.

Next release: Tue Sep 02, 2025 09:00 (Prel)

Frequency: Monthly

Consensus: 2%

Previous: 2%

Source: Eurostat


Date

Created

 : 2025.09.02

Update

Last updated

 : 2025.09.02

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

WTI posts modest gains above $64.50 as US crude inventories unexpectedly fall

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.55 during the Asian trading hours on Thursday. The WTI edges higher due to an unexpected fall in US crude inventories and fears that Ukrainian strikes on Russian energy facilities might threaten supply.
New
update2025.09.25 15:17

Crude oil price today: WTI price bearish at European opening

West Texas Intermediate (WTI) Oil price falls on Thursday, early in the European session. WTI trades at $64.60 per barrel, down from Wednesday's close at $64.68.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $68.28 after its previous daily close at $68.37.
New
update2025.09.25 15:05

FX option expiries for Sept 25 NY cut

FX option expiries for Sept 25 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.09.25 14:48

GBP/JPY ticks down to near 200.00, investor await Tokyo CPI data

The GBP/JPY pair edges lower to near 200.00 during the late Asian trading session on Thursday. The pair ticks down as the Japanese Yen (JPY) trades higher, following the release of the Bank of Japan (BoJ) Monetary Policy minutes of the July meeting released earlier in the day.
New
update2025.09.25 14:31

AUD/JPY Price Forecast: Constructive outlook remains in play above 98.00

The AUD/JPY cross trades flat near 98.05 during the early European session on Thursday. Minutes from the Bank of Japan's (BoJ) July meeting revealed that board members expect the central bank to keep hiking if inflation and the economy move as estimated.
New
update2025.09.25 14:26

EUR/GBP remains steady near 0.8750, eyes on German Consumer Confidence

EUR/GBP moves little as traders adopt caution ahead of the German GfK Consumer Confidence Survey, trading around 0.8730 during the Asian hours on Thursday. However, the currency cross faced challenges as the Euro (EUR) weakened following Wednesday's weaker-than-expected German business sentiment.
New
update2025.09.25 14:07

When is the SNB Interest Rate Decision and how could it affect USD/CHF?

The Swiss National Bank (SNB) interest rate decision is scheduled this Thursday, September 25, 2025, at 07:30 GMT, which will be followed by the post-meeting press conference at 08:00 GMT.
New
update2025.09.25 14:05

USD/INR corrects as Indian Rupee rebounds, outlook remains positive

The Indian Rupee (INR) opens on a slightly positive note against the US Dollar (USD) on Thursday. The USD/INR pair corrects to near 88.80 from the all-time high of 89.12 posted on Wednesday.
New
update2025.09.25 13:59

US Dollar Index Price Forecast: DXY eases from two-week high, dips to 97.75/38.2% Fibo.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, edges lower during the Asian session on Thursday and erodes a part of the previous day's strong move up to the 98.00 neighborhood, or a two-week high.
New
update2025.09.25 13:40

India Gold price today: Gold steadies, according to FXStreet data

Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
New
update2025.09.25 13:35

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