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
US Dollar Index falls further to near 97.20 as Fed sets to cut interest ratesThe US Dollar Index (DXY) trades 0.1% lower to near 97.20 during the Asian trading session on Tuesday. This is the lowest level seen in three weeks.
Author  FXStreet
3 hours ago
The US Dollar Index (DXY) trades 0.1% lower to near 97.20 during the Asian trading session on Tuesday. This is the lowest level seen in three weeks.
placeholder
Australian Dollar moves little following RBA Sarah Hunter's commentsThe Australian Dollar (AUD) steadies against the US Dollar (USD) on Tuesday after registering gains in the previous session.
Author  FXStreet
4 hours ago
The Australian Dollar (AUD) steadies against the US Dollar (USD) on Tuesday after registering gains in the previous session.
placeholder
Japanese Yen consolidates against USD amid mixed cues, ahead of central bank eventsThe Japanese Yen (JPY) extends its sideways consolidative price move against a broadly weaker US Dollar (USD) through the Asian session on Tuesday as traders opt to wait for this week's key central bank events.
Author  FXStreet
4 hours ago
The Japanese Yen (JPY) extends its sideways consolidative price move against a broadly weaker US Dollar (USD) through the Asian session on Tuesday as traders opt to wait for this week's key central bank events.
placeholder
US Dollar Index (DXY) treads water around 97.60 with all eyes on the FedThe US Dollar has opened the week on a moderate bearish tone.
Author  FXStreet
22 hours ago
The US Dollar has opened the week on a moderate bearish tone.
placeholder
Forex Today: Big central bank week begins in a calm mannerMajor currency pairs trade in familiar ranges to start the week as investors gear up for key macroeconomic data releases and central bank meetings.
Author  FXStreet
23 hours ago
Major currency pairs trade in familiar ranges to start the week as investors gear up for key macroeconomic data releases and central bank meetings.
Real-time Quote