- EUR / USD is negotiated in positive territory around 1.1390 during the Asian session on Wednesday.
- Job offers in the United States fell to 7.19 million in March, the lowest since September 2024.
- Merchants are preparing for German retail, ICC and GDP sales data, followed by the American report of the PCE, which is due Wednesday.
The EUR / USD pair is accompanied by almost 1.1390 during the first Asian session on Wednesday. The US dollar (USD) is decreasing compared to the euro (EUR) due to more soft than expected US economic data. The report on German economic data and personal consumer expenditure in the United States – Price Index (PCE) report for Mars will be in the spotlight later on Wednesday.
Job offers in the United States have dropped last month since September 2024, indicating the demand for lower labor on Tuesday in an increased case of economic uncertainty, according to the American work statistics. The figure fell to 7.19 million in March, against 7.48 million revised in February, below the market consensus of 7.5 million.
Meanwhile, the Conference Board’s consumer confidence index fell sharply at 86.0 in April compared to the previous reading of 93.9 (revised from 92.9), its lowest reading since April 2020. This report suggested the weakening of the American economy. The chances of reducing the rates of the American Federal Reserve (FED) reached 56.8% after lower data than the workforce and planned feeling data increased concerns about economic momentum. This, in turn, dragged the green tank below and acts like a rear wind for the main pair.
Traders will look closely at the publication of retail sales, the consumer price index (ICC) and the advanced estimate of the gross domestic product (GDP) of the first quarter (GDP). In addition, the T1 T1 preliminary growth rate for the euro zone will be published on the same day. If the reports show a stronger result than expected, it could raise the short -term shared currency. short -term currency.
FAQ Euro
The euro is the currency of the 19 countries of the European Union which belong to the euro zone. It is the second most exchanged currency in the world behind the US dollar. In 2022, he represented 31% of all exchange transactions, with an average daily turnover of more than 2.2 billions of dollars per day. The EUR / USD is the most negotiated currency pair in the world, representing around 30%reduction on 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 of the euro zone. The ECB establishes interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means controlling inflation or stimulating growth. Its main tool is the increase or decrease in interest rates. Relatively high interest rates – or higher rate waiting – will generally benefit the euro and vice versa. The ECB board of directors makes monetary policy decisions during meetings held eight times a year. The decisions are made by the chiefs of national banks in the euro zone and six permanent members, including the president of the ECB, Christine Lagarde.
Inflation data from the euro zone, measured by the harmonized consumer prices index (HICP), is an important econometric for the euro. If inflation increases more than expected, especially if the 2% objective of the ECB forces the ECB to increase interest rates to bring it closer. Relatively high interest rates compared to its counterparts will generally benefit the euro, as it makes the region more attractive as a place for global investors to park their money.
Data versions assess the health of the economy and can have an impact on the euro. Indicators such as GDP, manufacturing and PMI services, employment and surveys on consumer feelings can all influence the management of the single currency. A strong economy is good for the euro. Not only does it attract more foreign investments, but it can encourage the ECB to establish interest rates, which will directly strengthen the euro. Otherwise, if the economic data is low, the euro is likely to drop. Economic data for the four largest economies in the euro zone (Germany, France, Italy and Spain) are particularly important, because they represent 75% of the economy in the euro zone.
Another significant data press release for the euro is the trade balance. This indicator measures the difference between what a country gains from its exports and what it spends in imports over a given period. If a country produces highly sought -after exports, its currency will gain in value only from the additional demand created from foreign buyers seeking to buy these goods. Consequently, a positive net trade balance reinforces a currency and vice versa for a negative balance.
