The Euro (EUR) traded flat against the US Dollar (USD) on Friday, oscillating around the middle of its Wednesday range. While short-term charts suggest continued range trading, longer-term patterns remain bullish. ECB Governor Nagel's comments about avoiding hasty rate cuts add to the uncertainty surrounding the EUR's future direction.
The Eur o ( EUR ) remained relatively stable against the US Dollar ( USD ) on Friday, hovering around the midpoint of Wednesday's extensive trading range, according to Scotiabank's Chief FX Strategist, Shaun Osborne. Technical charts display tentatively positive signals. Earlier on Friday, ECB Governor Nagel expressed the view that the central bank should avoid hasty rate cuts , echoing Holzmann's statement from earlier in the week.
Nagel emphasized that inflation persists at a high level and uncertainty remains significant. Eurozone Consumer Price Index (CPI) was finalized at 2.4% for the December year-on-year period, aligning with the preliminary data. Throughout much of the week, the spot market has fluctuated within a narrow range of 50 to 60 pips around 1.03. Short-term trading patterns indicate a higher likelihood of range-bound trading today as bearish momentum weakens. However, longer-term trends are still showing a positive inclination for the EUR. Notably, I observed a bullish 'morning star' pattern on the daily candlestick chart around the beginning of the week, which remains intact even though progress has stalled since Wednesday. The weekly chart may also exhibit a bullish signal, known as a 'piercing line,' if the EUR can maintain its gains towards the close of the week. Typically, this sign would strongly suggest a potential upward push. However, the prevailing macroeconomic environment indicates a greater risk of directional movement against the EUR.
EUR USD Euro US Dollar ECB Rate Cuts Inflation Technical Analysis Forex Trading
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Holds Near One-Month Low as US Dollar StrengthensThe EUR/USD currency pair traded cautiously near a one-month low on the first trading day of the year, pressured by the strong US Dollar. The Fed's recent guidance on fewer interest rate cuts in 2025, coupled with a robust US economic outlook, boosted the USD. Meanwhile, investors anticipate steady interest rate cuts from the ECB until June.
Read more »
EUR/USD Holds Steady Above 1.0400 Amid Narrow Trading RangeThe EUR/USD currency pair continues to trade sideways above 1.0400, with technical indicators offering little directional guidance. Cautious remarks from ECB officials regarding interest rate cuts and inflation concerns contribute to the Euro's resilience against its rivals. Trading is expected to remain range-bound until after the New Year holiday.
Read more »
EUR/GBP rises sharply to near 0.8250 after BoE holds rates steady at 4.75%The EUR/GBP pair climbs to near 0.8260 in Thursday’s North American session.
Read more »
EUR/GBP holds above 0.8300 on BoE dovish betsThe EUR/GBP cross extends the rally to around 0.8305 during the early European session on Monday.
Read more »
EUR/USD Holds Steady Near 1.0400 on Christmas EveThe EUR/USD pair traded in a tight range near 1.0400 on Tuesday, December 26th, as trading volumes thinned out ahead of the Christmas holiday.
Read more »
EUR/USD Holds Steady Near 1.0400 as Markets Remain Closed for ChristmasWith most financial markets closed for the Christmas holiday, EUR/USD trades near 1.0400, showing limited movement. While the 10-year Treasury bond yield reaches its highest point since May, the holiday lull keeps markets quiet. The technical outlook, however, suggests a continued downward bias for EUR/USD.
Read more »