EUR/USD lacks firm intraday direction, stuck in a range around 1.0375-1.0380 zone

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos


  • EUR/USD consolidates in a range near the weekly high touched earlier this Wednesday.


  • The USD struggles to lure buyers amid Fed rate cut bets and lends support to the major. 


  • Concerns about Trump’s trade tariffs and dovish ECB weigh on the Euro and cap the pair.


The EUR/USD pair struggles to capitalize on this week's solid recovery from the 1.0200 neighborhood, or the lowest level since January 13, and oscillates in a range near the weekly top touched earlier this Wednesday. Spot prices currently trade around the 1.0375-1.0380 region, nearly unchanged for the day amid mixed fundamental cues.


The Job Openings and Labor Turnover Survey (JOLTS) published on Tuesday pointed to a slowdown in the US labor market and supports prospects for further policy easing by the Federal Reserve (Fed). In fact, the markets are pricing in the possibility that the US central bank will lower borrowing costs twice this year. Apart from this, the risk-on mood keeps the safe-haven US Dollar (USD) depressed near the weekly low, which, in turn, is seen acting as a tailwind for the EUR/USD pair. 


Traders, however, seem reluctant to place aggressive bullish bets in the wake of concerns that US President Donald Trump would slap tariffs on goods from the European Union. Adding to this, the European Central Bank's (ECB) dovish stance, which overshadowed a rise in the Eurozone Harmonized Index of Consumer Prices (HICP) at an annual rate of 2.5% in January, is seen undermining the Euro and contributing to keeping a lid on any meaningful upside for the EUR/USD pair.


Traders now look forward to the release of the final Eurozone Services PMI. Meanwhile, the US economic docket features the release of the ADP report on private-sector employment and ISM Services PMI. Apart from this, speeches by influential FOMC members will drive the USD demand and provide a fresh impetus to the EUR/USD pair. The focus, however, remains glued to the US monthly employment details – popularly known as the Nonfarm Payrolls (NFP) report on Friday.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Japanese Yen rallies on strong wage growth data; USD/JPY slumps to mid-153.00sThe Japanese Yen (JPY) attracts fresh buyers after data released during the Asian session on Wednesday showed a rise in Japan's real wages, which reaffirms bets that the Bank of Japan (BoJ) will raise interest rates again.
Author  FXStreet
4 hours ago
The Japanese Yen (JPY) attracts fresh buyers after data released during the Asian session on Wednesday showed a rise in Japan's real wages, which reaffirms bets that the Bank of Japan (BoJ) will raise interest rates again.
placeholder
GBP/USD extends recovery but remains on shaky groundGBP/USD continued to grind higher on Tuesday, extending a recovery after the week’s early plunge on trade war concerns sparked by US President Donald Trump’s sweeping threats to impose stiff tariffs on his own constituents in an effort to punish some of the US’ closest trade allies.
Author  FXStreet
6 hours ago
GBP/USD continued to grind higher on Tuesday, extending a recovery after the week’s early plunge on trade war concerns sparked by US President Donald Trump’s sweeping threats to impose stiff tariffs on his own constituents in an effort to punish some of the US’ closest trade allies.
placeholder
EUR/USD bounces as market pressures abateEUR/USD lurched higher by eight-tenths of one percent on Tuesday, regaining lost ground but failing to recapture the 1.0400 handle.
Author  FXStreet
6 hours ago
EUR/USD lurched higher by eight-tenths of one percent on Tuesday, regaining lost ground but failing to recapture the 1.0400 handle.
placeholder
USD/CHF posts modest gains above 0.9100, China hits back after US tariffs take effectThe USD/CHF pair trades with mild gains around 0.9125 during the early European session on Tuesday.
Author  FXStreet
Yesterday 06: 34
The USD/CHF pair trades with mild gains around 0.9125 during the early European session on Tuesday.
placeholder
NZD/USD rebounds above 0.5600, all eyes turn to Trump’s China tariffThe NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday.
Author  FXStreet
Yesterday 02: 45
The NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday.
Real-time Quote