EUR/USD eases on Thursday, slipping below 1.0900 once again

EUR/USD sheds 0.2% to fall back below the 1.0900 handle on Thursday.

Market sentiment remains subdued overall as investors recover from Powell glut.

Fiber markets have snapped a recent win streak as the Euro falls back for a second day.

EUR/USD backslid for a second consecutive trading day, falling one-fifth of one percent on Thursday as markets continue to keep one foot in the safe haven US Dollar amid still-bubbling market tensions around the US’s waffling on tariff policy.

Federal Reserve (Fed) Chair Jerome Powell downplayed economic pitfalls at the hands of US President Donald Trump’s tariff threats that seem to exist in a quantum state where they both exist and do not exist simultaneously. According to Fed Chair Powell, downside risks have certainly elevated thanks to on-again, off-again tariff threats, but Fed policymakers continue to insist that US economic data remains healthy, albeit off of recent highs.

The Philadelphia Federal Reserve (Fed) Bank’s Manufacturing Survey for March eased to 12.5 MoM, falling from the previous month’s 18.1 and declining for the second month in a row, but pulling the brakes and falling less than the median market forecast of 8.5. US weekly Initial Jobless Claims also rose slightly less than expected, clocking in at 223K net new jobless benefits seekers compared to the previous week’s 220K. Investors had expected a print of 224K. US Existing Home Sales also rose nearly a third of a million more transactions than expected, rising to 4.26 million units moved in February compared to January’s revised 4.09 million. Market watchers had expected a slight slowing to 3.95 million.

there is little of note on Friday's economic data docket, leaving investors to grapple with and digest the week's events. Traders will also be keeping an eye out for any social media developments from President Trump. Donald Trump has made a habit of sending major proclamations into the void during Friday afternoons, prompting significant market reactions to both end the current week and kick off the next one, even though the majority of President Trump's statements have an iffy track record of coming true.

EUR/USD price forecast

EUR/USD shed weight for a second day, trimming another 20-odd pips and dragging the major pair back below the 1.0900 handle. Price action is drifting into rough sideways chop as directional momentum bleeds out of the charts, but near-term bidding action remains supported by 1.0800.

EUR/USD daily chart