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EUR/USD Falls to 1.1640, Weekly Loss 0.7% as US Dollar Stays Strong

The EUR/USD currency pair ended the week near the 1.1640 level, posting a weekly loss of around 0.7%. The fall came as the US Dollar remained strong against major global currencies.

Throughout the week, the Dollar gained support due to strong US economic data and higher bond yields, which reduced demand for the Euro. Traders also stayed cautious ahead of key economic updates from the US Federal Reserve and the European Central Bank (ECB).

The Euro struggled to recover as concerns over slow economic growth in the Eurozone continued to weigh on sentiment. As a result, the EUR/USD pair remained under pressure and failed to hold higher levels.

Market experts say the near-term trend for EUR/USD remains weak, and further movement will depend on upcoming inflation data, interest rate cues, and global risk sentiment.

EUR/USD prolonged its agony throughout the week, poising to print losses of 0.70%, as it fell 0.20% on Friday, despite the release of mixed economic data in the US. In the European Union, Retail Sales exceeded forecasts, but traders’ focus remains around the dynamics of the US and the Dollar. The pair trades at 1.1636 after hitting a daily peak of 1.1662.

Euro remains under pressure despite mixed US data, as investors stay focused on Dollar dynamics

December’s US Nonfarm Payroll figures were mixed as the economy added 50K jobs, below forecast for a 60K increase, also below November’s 64K print. Nevertheless, the Unemployment Rate edged lower from 4.6& to 4.4%, revealed the US Bureau of Labor Statistics (BLS).

Other data revealed that the housing market continued to lose momentum, as Building Permits and Housing Starts in October both declined relative to November’s readings. Meanwhile the University of Michigan Consumer Sentiment preliminary report for January came in stronger than expected.

In the Eurozone, consumers consumption increased in November, up 0.2% MoM an improvement compared to October’s flat reading and beat estimates. German data was also mixed during the day, as Industrial Production exceeded forecasts, though the trade balance narrowed as exports declined.

Next week: Busy schedule in Europe and the US

The Eurozone economic docket will feature speeches by European Central Bank policymakers, the release of the Sentix Investor Confidence, the Harmonized Index of Consumer Prices (HICP) in the bloc, Germany, Spain and Italy.

In the US, the calendar will feature consumer and producer price indices, Retail sales, jobless claims and Fed officials’ comments.

❓ FAQs

1. Why did EUR/USD fall this week?

EUR/USD fell due to strong US Dollar demand supported by better US economic data and rising bond yields.

2. What was the weekly closing level of EUR/USD?

The EUR/USD pair ended the week near the 1.1640 level.

3. How much did EUR/USD lose this week?

EUR/USD posted a weekly loss of around 0.7%.

4. What factors weakened the Euro?

Concerns over slow Eurozone growth and cautious market sentiment weakened the Euro.

5. What should traders watch next for EUR/USD?

Traders should watch US inflation data, Federal Reserve signals, ECB updates, and global market trends.

Disclaimer

This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.

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