EUR/USD holds positive ground near 1.1500 ahead of Fed rate decision

출처 Fxstreet
  • EUR/USD gains traction to near 1.1500 in Wednesday’s Asian session. 
  • The Fed is likely to keep rates steady at the June meeting on Wednesday. 
  • The hawkish ECB bets support the Euro, but persistent Israel-Iran tensions might cap its upside. 

The EUR/USD pair attracts some buyers to around 1.1500 during the Asian trading hours on Wednesday. A slew of downbeat US economic data weigh on the Greenback. However, escalating Israel-Iran tensions might cap the upside for the major pair. The US Federal Reserve (Fed) rate decision will be closely watched later on Wednesday. 

Eroding confidence in the US economy amid trade policies undermines the US Dollar (USD) against the Euro (EUR). Data released by the US Census Bureau on Tuesday revealed that Retail Sales in the United States fell by 0.9% MoM in May, compared to the 0.1% decrease (revised from +0.1%) recorded in April. This figure came in weaker than the estimations of -0.7%. Meanwhile, the US Industrial Production declined by 0.2% MoM in May versus 0.1% prior (revised from 0%), worse than the 0.1% expected. 

Traders expect the US Fed to leave borrowing costs unchanged at its June meeting on Wednesday. The markets are now pricing in nearly 80% odds of a Fed rate cut in September, followed by another one in October, according to Reuters. 

"In the very near term a cautious message will probably be reemphasised, but what will be interesting is how they interpret and navigate the new forecast, which we think will show a lower growth path alongside potentially stickier inflation," said currency strategist Rodrigo Catril at National Australia Bank.

The hawkish tone from the European Central Bank (ECB) policymakers supports the shared currency. ECB President Christine Lagarde said that rate reductions are coming to an end as the central bank is now “in a good position” to deal with prevailing uncertainties. 

Meanwhile, investors will keep an eye on geopolitical risks. Israel is set to intensify its attacks on Tehran, while the US is considering expanding its role amid rising tensions between Israel and Iran. Any signs of escalation could boost the safe-haven flows, benefiting the Greenback. 

Euro FAQs

The Euro is the currency for the 19 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 for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s 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 – or the expectation of higher rates – 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.

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’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. 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.

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. 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’s economy.

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. 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.

면책 조항: 정보 제공 목적으로만 사용됩니다. 과거 성과가 미래 결과를 보장하지 않습니다.
placeholder
비트코인·이더리움·리플 가격 전망 ‑ BTC·XRP 사상 최고치 근접, ETH는 4,000달러 눈앞비트코인(BTC)과 리플(XRP)이 각자 사상 최고치에 바짝 다가선 가운데, 이더리움(ETH)은 핵심 심리적 저항선인 4,000달러를 향해 꾸준히 상승 중이다.
저자  FXStreet
7 월 23 일 수요일
비트코인(BTC)과 리플(XRP)이 각자 사상 최고치에 바짝 다가선 가운데, 이더리움(ETH)은 핵심 심리적 저항선인 4,000달러를 향해 꾸준히 상승 중이다.
placeholder
비트코인·이더리움·리플 가격 전망: FOMC 앞두고 BTC·ETH·XRP 변동성 확대 대비비트코인(BTC)은 최근 2주간 $116,000~$120,000 구간에서 횡보세를 보이며 투자자들의 방향성 부재를 나타내고 있다. 이더리움(ETH)과 리플(XRP)은 주요 지지선 위에서 거래되며 반등 조짐을 보이고 있으며, 시장은 수요일 예정된 연방준비제도(Fed)의 기준금리 발표를 앞두고 3대 암호화폐 전반에 변동성 확대를 주시하고 있다.
저자  FXStreet
7 월 30 일 수요일
비트코인(BTC)은 최근 2주간 $116,000~$120,000 구간에서 횡보세를 보이며 투자자들의 방향성 부재를 나타내고 있다. 이더리움(ETH)과 리플(XRP)은 주요 지지선 위에서 거래되며 반등 조짐을 보이고 있으며, 시장은 수요일 예정된 연방준비제도(Fed)의 기준금리 발표를 앞두고 3대 암호화폐 전반에 변동성 확대를 주시하고 있다.
placeholder
비트코인 세 번째 차익실현에 암호화폐 하락 전환…SPX·VIRTUAL·PENDLE 낙폭 확대암호화폐 시장이 비트코인의 세 번째 대규모 차익실현 흐름 속에 하락세로 전환됐다. SPX6900(SPX), Virtuals Protocol(VIRTUAL), Pendle(PENDLE)은 주요 기술 지지선을 이탈하며 낙폭을 키우고 있다. CryptoQuant는 7월 말 기준 실현 수익이 60억~80억 달러에 달했다고 밝혔다.
저자  FXStreet
3 시간 전
암호화폐 시장이 비트코인의 세 번째 대규모 차익실현 흐름 속에 하락세로 전환됐다. SPX6900(SPX), Virtuals Protocol(VIRTUAL), Pendle(PENDLE)은 주요 기술 지지선을 이탈하며 낙폭을 키우고 있다. CryptoQuant는 7월 말 기준 실현 수익이 60억~80억 달러에 달했다고 밝혔다.
placeholder
비트코인·이더리움·리플 가격 전망: BTC $112K, ETH $3,500, XRP $2.78 하락 목표로 전환Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) price action are showing signs of weakness as bears gain control of the momentum. BTC and ETH close below their key support levels, while XRP hovers around a critical level, all hinting at potential downside moves in the near term.
저자  FXStreet
3 시간 전
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) price action are showing signs of weakness as bears gain control of the momentum. BTC and ETH close below their key support levels, while XRP hovers around a critical level, all hinting at potential downside moves in the near term.
placeholder
솔라나·도지코인·카르다노, 6억 3천만 달러 규모 청산 속 급락 주도금요일 암호화폐 시장이 하락세로 전환되며, 솔라나(SOL), 도지코인(DOGE), 카르다노(ADA)가 낙폭을 주도하고 있다. 연준의 금리 동결 결정과 비트코인 차익실현이 맞물리며 파생상품 시장에서 6억 3,500만 달러 규모의 포지션이 청산됐다.
저자  FXStreet
3 시간 전
금요일 암호화폐 시장이 하락세로 전환되며, 솔라나(SOL), 도지코인(DOGE), 카르다노(ADA)가 낙폭을 주도하고 있다. 연준의 금리 동결 결정과 비트코인 차익실현이 맞물리며 파생상품 시장에서 6억 3,500만 달러 규모의 포지션이 청산됐다.
goTop
quote