- After extending tariffs on Chinese ships by the White House, the euro edges are high under the pressure of the US dollar after promoting global trade risks.
- Trump allegedly furious with Fed Chair Powell; The advisor says that the President reviews the validity of dismissal.
- ECB’s Muller says that low energy prices and tariff rate cuts justifies, although warnings that fragmentation can carry forward inflation.
Euro (EUR) In Mute Trading, financial markets are closed on good Friday as advances against the US Dollar (USD). At the time of writing, EUR/USD trades at 1.1385, up to 0.21%, lacks the strength to break the elusive 1.14 points.
Eur/USD digested the market as a market as a market as a market and renew the concerns of new freedom as a market as a market.
The focus of the financial markets focuses on the United States (US) controversial trade policies, which, like a shared currency, removed prices to dump greenback in favor of other G8 FX peers.
Nevertheless, the White House is proceeding with the applying levy on docking Chinese ships at American ports, which would threaten to shake global shipping routes and increase trade war between China and America.
On Thursday, Breaking News revealed that President Trump was angry with the President of the Federal Reserve (Fed). Zerome poly And considered it out. Although the market participants did not react to the headline, recently, Senior Advisor of the White House Kevin Haset stressed that “Trump is studying whether the firing fed is an option.”
meanwhile, US dollar index (DXY), which tracks the performance of a deer against a basket of six other currencies, falls 0.09%, below 99.31.
With the news flow light, the European Central Bank (ECB) Madis Muller revealed that the rate of energy prices and the decline in tariffs supported the rate cut. He said that the police does not have an obstacle and that key Indicator Moving in the right direction. He also stated that a more fragmented economy can increase prices.
EUR/USD Price Forecasting: Technical approach
The EUR/USD trades near the current week’s peak near 1.1400, showing the Euro with value action and is ready to increase the past of the area that is opening the door to reversed further. Major resistance levels are at high level on 11 April at 1.1473, followed by 1.1498, February 2022 Peak, ahead of the figure of 1.1500.
Euro sub -procurement
Euro 19 is the currency for the countries of the European Union that belong to Eurozone. This is the second most trading currency in the world behind the US dollar. In 2022, it was responsible for 31% of all forex transactions, with the average daily turnover $ 2.2 trillion more than a day. EUR/USD is the world’s heaviest business currency pair, which is accounting for all transactions estimated from all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
Frankfurt is the Reserve Bank for European Central Bank (ECB), Eurozone in Germany. The ECB determines interest rates and manages monetary policy. The primary mandate of ECB is to maintain value stability, which means to either control inflation or stimulate growth. Its primary tool is to increase or reduce interest rates. Relatively high interest rates – or compared to high rates – usually will benefit the euro and vice versa. The ECB Governing Council takes the monetary policy decision in the meetings held eight times a year. Decisions are made by Eurozone national banks and heads of six permanent members, including ECB President, Christine Lagard.
Eurozone inflation data, measured by the harmonious index of consumer value (HICP), is an important economical for the euro. If inflation increases more than expected, especially if above 2% target of ECB, it binds the ECB to raise interest rates to bring it under control. Relatively high interest rates will usually benefit the euro than its counterparts, as it makes the region more attractive as a place to park its money for global investors.
The data releases the health of the economy and can affect the euro. Indicators like GDP, manufacturing and services PMI, employment and consumer spirit survey can all affect the direction of single currency. A strong economy is good for the euro. Not only does it attract more foreign investment, but it can also encourage ECB to keep interest rates, which will directly strengthen the euro. Otherwise, if the economic data is weak, the euro is likely to fall. Economic data is particularly important for the four largest economies in the Euro region (Germany, France, Italy and Spain), as they are 75% of the Eurozone economy.
Another important data release for the euro is the business balance. Measure the difference between what this indicator earns from its exports and what spends on imports over a certain period. If a country makes excessive demand after exports, its currency will receive purely value from the additional demand made from foreign buyers to buy these goods. Therefore, a positive pure business balance strengthens a posture and contrast to a negative balance.
