<\/p>\n
\n Share:<\/span><\/p>\n Following Thursday\u2019s drop to multi-month lows, the Euro (EUR) managed to pick up some upside traction against the US Dollar (USD) on Friday, encouraging EUR\/USD<\/strong><\/a> to retake the 1.0660 region in Europe’s opening bell\u00a0at the end of the week.<\/p>\n The improvement in sentiment surrounding the pair comes pari passu with firmer results from the Chinese economic docket published during early trade, which helps\u00a0risky assets to regain some poise.<\/p>\n On the flip side, the Greenback recedes from recent multi-month tops around 105.40 when tracked by the USD Index (DXY)<\/strong><\/a> against the backdrop of further gains in US yields across different time frames.<\/p>\n The monetary policy<\/a> landscape in the US remains broadly unchanged, with investors steadfast in their anticipation of potential interest rate cuts by the Federal Reserve (Fed) taking place at some point in the second quarter of 2024.<\/p>\n Shifting our attention to the European Central Bank<\/a> (ECB), following the dovish rate hike on Thursday, market participants have begun to factor in an extended pause. This shift in sentiment is driven by the continuing deterioration of key economic indicators<\/a> in Germany and the wider eurozone. Furthermore, inflation in the region continues to exceed the bank’s target. The concerns of excessive tightening, along with mounting worries of stagflation, further support this outlook<\/a>.<\/p>\n Back on the domestic calendar, final inflation figures in Italy showed the CPI rose 0.3% MoM in August and 5.4% over the last twelve months. Later, Trade Balance figures\u00a0for the broader eurozone are also due, while ECB President Christine Lagarde will speak at the ECOFIN meeting in Spain.<\/p>\n Across the Atlantic, all the attention will be on the release of August’s\u00a0Industrial Production readings ahead of\u00a0the preliminary gauge of the Michigan Consumer Sentiment survey for September.<\/p>\n EUR\/USD seems to have met initial contention around the 1.0630 region, or\u00a0March lows.<\/p>\n Should EUR\/USD successfully break below its September 14 low at 1.0631, it may enter a phase of retesting the March 15 low at 1.0516. If the latter level is breached, it could initiate a possible examination of the 2023 low at 1.0481 seen on January 6.<\/p>\n On the upside, the primary focus\u00a0lies on targeting the crucial 200-day Simple Moving Average (SMA) at 1.0827. If the pair surpasses this level, a bullish momentum might ensue, leading to a challenge of the interim 55-day SMA at 1.0926 ahead of the weekly peak at 1.0945 seen on August 30. The surpass of the latter could pave the way for an advance towards the psychological level of 1.1000 and the August 10 high at 1.1064. If the spot clears this area, it could\u00a0potentially aim for the July 27 top at 1.1149, followed by the 2023 high at 1.1275 from July 18.<\/p>\n As long as the EUR\/USD remains below the 200-day SMA, there remains a possibility of a sustained decline in the pair.<\/p>\n <\/p>\n The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted<\/a> for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB\u2019s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Share: The Euro regains some balance against the US Dollar. Stocks in Europe opened with strong gains on Friday. EUR\/USD appears to have met contention around 1.0630. The USD Index (DXY) gives aways part of the recent strong advance. The ECB seems to have entered an impasse regarding rate hikes. Industrial Production and Consumer Sentiment […]<\/p>\n","protected":false},"author":2,"featured_media":15582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,276,825,433,255,250,277,252,247,253,249,5212,256,254],"class_list":["post-156474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-currencies","tag-ecb","tag-eurusd","tag-gta","tag-looks-rare","tag-majors","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=156474"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156474\/revisions"}],"predecessor-version":[{"id":156476,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156474\/revisions\/156476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/15582"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=156474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=156474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=156474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Daily digest market movers: Euro grabs some breathing space<\/h2>\n
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Technical Analysis: Euro still risks a drop to 1.0516<\/h2>\n
Euro FAQs<\/h2>\n
EUR\/USD is the most heavily traded currency pair in the world, accounting<\/a> for an estimated 30% off all transactions, followed by EUR\/JPY (4%), EUR\/GBP (3%) and EUR\/AUD (2%).<\/p>\n<\/section>\n
The ECB\u2019s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates \u2013 or the expectation of higher rates \u2013 will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.<\/p>\n<\/section>\n
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.<\/p>\n<\/section>\n
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone\u2019s economy.<\/p>\n<\/section>\n
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.<\/p>\n<\/section>\n<\/div>\n