- The Euro remains depressed near one-month lows, weighed by concerns about the consequences of the EU-US trade deal.
- Preliminary Eurozone GDP data showed that the economy expanded, against expectations, in the second quarter.
- Forex markets are likely to remain in range ahead of the Federal Reserve’s monetary policy decision.
The EUR/USD pair has resumed its broader bearish trend ahead of the US session opening on Wednesday, and is on track for its first monthly decline since December last year. The unexpected growth shown by the preliminary Eurozone Gross Domestic Product (GDP) has failed to ease concerns about the negative consequences of a recent trade deal between the Eurozone and the US, while the Dollar picks up ahead of the US preliminary GDP reading and the Federal Reserve (FED) monetary policy decision
The Euro (EUR) posted a mild recovery attempt from five-week lows in Asia, but it was capped at 1.1575 and price action retreated again, ahead of the US market opening, with bears aiming to retest Tuesday’s high at 1.1515 at the time of writing. The pair has turned negative on the daily chart and is trading more than 2% below Monday’s highs..
Traders are turning increasingly cautious as we head into the Fed’s decision. The US central bank is widely expected to keep interest rates on hold. The attraction of the event will be Chairman Jerome Powell’s comments to assess any sign of a potential rate cut in the coming months.
Wednesday’s monetary policy decision will have a particular transcendence, as it comes after weeks-long unprecedented attacks from US President Donald Trump on the Fed chairman, calling for interest rate cuts, which have raised questions about the independence of the central bank.
In Europe, the preliminary Q2 GDP has shown a 0.1% expansion in the second quarter, down from the 0.6% growth seen in the first three months of the year, but above the 0% reading forecasted by market analysts. Somewhat earlier, German Retail Sales data from June beat expectations, in the same line as France’s GDP. The impact of these figures on the Euro, however, has been muted.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.15% | -0.17% | -0.04% | 0.14% | 0.40% | 0.17% | 0.06% | |
EUR | -0.15% | -0.29% | -0.27% | -0.04% | 0.19% | 0.01% | -0.05% | |
GBP | 0.17% | 0.29% | 0.04% | 0.31% | 0.52% | 0.34% | 0.25% | |
JPY | 0.04% | 0.27% | -0.04% | 0.25% | 0.51% | 0.29% | 0.17% | |
CAD | -0.14% | 0.04% | -0.31% | -0.25% | 0.26% | 0.04% | -0.05% | |
AUD | -0.40% | -0.19% | -0.52% | -0.51% | -0.26% | -0.18% | -0.26% | |
NZD | -0.17% | -0.01% | -0.34% | -0.29% | -0.04% | 0.18% | -0.08% | |
CHF | -0.06% | 0.05% | -0.25% | -0.17% | 0.05% | 0.26% | 0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily digest market movers: The US Dollar holds gains ahead of the Fed
- The US Dollar emerged as the biggest winner in a series of trade deals between the US and its main trading partners. A new round of talks with China held in Stockholm ended without any significant breakthrough, but comments from Trump were positive, which suggests that the trade truce between the world’s two major economies might extend beyond the August 12 deadline.
- Earlier on Wednesday, Destatis data revealed that the German economy contracted by 0.1% in Q2 compared with the previous quarter, as expected. Meanwhile, German Retail Sales increased 1.0% in June, following a 0.6% contraction in May, twice as much as the 0.5% increment forecasted by market analysts.
- Likewise, France’s GDP accelerated to 0.3% in the second quarter against expectations of a steady 0.1% reading. France’s consumer spending also beat expectations in June, with a 0.6% rise, against the 0.1% decline anticipated by the market’s consensus.
- Before the Federal Reserve’s monetary policy decision, due later on the day, the US preliminary GDP is expected to show a 2.4% annualised growth in the second quarter after the 0.5% contraction in the first quarter.
- In the US, on Tuesday, US JOLTS Job Openings declined beyond expectations to 7.43 million from 7.77 million in May, suggesting some cooling in the labour market.
- Also on Tuesday, the Conference Board’s Consumer Confidence Index showed a larger-than-expected improvement, but the survey confirmed that Americans remain wary of the impact of tariffs on their economies. The US Dollar pulled back from its highs after the figures were released.
EUR/USD remains bearish,the with the 1.1450 support coming into view

EUR/USD remains under bearish pressure, with upside attempts finding sellers. The pair’s feeble recovery attempts have been capped well below Tuesday’s highs, keeping the negative structure in play, aiming for a retest of Tuesday’s low, at 1.1515. Further down, the next targets are the 1.1500 psychological level, and the June 18,19, and 23 lows, at the 1.1450 area.
Technical indicators are at oversold levels, but the pair, so far, is not showing signs of a trend shift. Upside attempts have been capped at 1.1575 earlier on Wednesday, and Tuesday’s high of 1.1600 is expected to pose significant resistance. A successful break of that level would target 1.1680 (July 22 low) and the 1.1700 area (near July 23 and 25 lows).