The euro is trading near the $1.19 level, with investors awaiting the US CPI release for further direction. Stronger-than-expected US jobs data has dampened expectations of a near-term Federal Reserve rate cut, supporting the dollar and limiting the euro’s gains. The European Central Bank’s seeming indifference to the euro’s recent appreciation has provided some support, as has news of a prominent ECB member stepping down early.
- The euro’s gains are tempered by stronger-than-expected US jobs data, reducing expectations of a Federal Reserve rate cut.
- The European Central Bank seems unfazed by the euro’s recent appreciation.
- Bank of France Governor François Villeroy de Galhau will step down in June, earlier than expected.
- Eurozone Q4 GDP second estimate has little to no impact on the Euro.
- US CPI data is critical and could impact the US Dollar, thereby influencing EUR/USD.
- The US Dollar found demand as a safe haven on Thursday.
- Rumors that President Trump was planning to roll back some tariffs on steel and aluminium.
The data suggests the euro’s performance is currently tied to external factors, primarily US economic data and monetary policy expectations. While the ECB’s stance offers some underlying support, the near-term direction likely hinges on upcoming US CPI figures and their impact on the dollar. Political factors might also have an impact, based on policy.