The Euro is experiencing mild selling pressure, hovering around the $1.175 level as investors react to mixed PMI data from major European economies and ongoing geopolitical uncertainties. While overall Eurozone private sector activity expanded, growth was slightly below expectations. Germany showed stronger growth, but France saw a contraction in business activity.
- EUR/USD is experiencing mild selling pressure around 1.1740, partially reversing Thursday’s gains.
- Eurozone private sector activity expanded in January, but at a slightly slower pace than expected.
- Germany’s data indicated stronger-than-forecast growth, while France’s business activity contracted.
- US President Trump is holding off on tariffs related to the Greenland situation following talks with NATO.
- US PMI data will be watched closely; stronger Eurozone PMI figures could support the Euro.
- Market risk sentiment and US stock market performance could influence the US Dollar’s strength and, consequently, EUR/USD.
The current environment suggests a cautious outlook for the Euro. Mixed economic data from key Eurozone countries creates uncertainty about the currency’s near-term trajectory. Geopolitical factors and the performance of the US economy and stock market add further complexity, suggesting potential volatility for the Euro in the coming sessions.