EUR/USD recovers its recent losses posted in the previous session, trading around 1.1310 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) struggles due to a drop in US Treasury yields, which continue to depreciate after the 30-year US bond yield pulled back from 5.15%, the highest in 19 months.
US President Donald Trump's "One Big Beautiful Bill" passed the US House of Representatives and is on its way to the Senate floor, which has raised concerns regarding the increase in the fiscal deficit in the United States (US).
However, the EUR/USD pair registered around 0.50% losses on Thursday as the Greenback advanced as US S&P Global Composite Purchasing Managers' Index (PMI) posted a 52.1 reading for May, rising from April's 50.6 reading. Meanwhile, the Manufacturing PMI rose to 52.3 from 50.2 prior, while the Services PMI rose to 52.3 from 50.8.
Fed Governor Christopher Waller noted on Thursday that markets are monitoring fiscal policy. Waller further stated that if tariffs are close to 10%, the economy would be in good shape for H2, and the Fed could be in a position to cut later in the year.
The Financial Times reported that President Trump pushes the European Union (EU) to cut tariffs or face extra duties. US Trade Representative Greer is set to tell EU counterpart Maroš Šefčovič, Commissioner for Trade and Economic Security, that the recent "explanatory note" falls short of US expectations.
On Thursday, European Central Bank (ECB) policymaker Boris Vujčić noted that the "Eurozone growth is positive but low." Vujčić expects that inflation may get close to the 2% target at the end of the year and achieve the target in early 2026. Meanwhile, Joachim Nagel, President of the Bundesbank and member of the European Central Bank's (ECB) Governing Council (GC), argued that the bank's current interest rate level is not considered restrictive.
Eurozone's HCOB Flash PMI highlighted the ongoing economic slowdown in May. The Services PMI fell from 50.1 to 48.9, below estimates of 50.3, and the Manufacturing PMI stood at 49.4, up from 49.0 in April, exceeding forecasts. Meanwhile, the German HCOB Services PMI dipped from 49.0 to 47.2, below forecasts for a 49.5 increase. The HCOB Manufacturing PMI rose by 48.8, up from April's 48.4, below forecasts for a 48.9 increase. Traders would likely observe the German Gross Domestic Product (GDP) due on Friday.
Source: Fxstreet
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which ...
EUR/USD loses ground for the sixth consecutive day on Wednesday, trading below 1.1730 after peaking above 1.1800 last week. The pair struggles amid a moderate US Dollar (USD) rebound following the rel...
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th. ...
The euro rebounded above $1.16, reaching its strongest level since mid-November, as investors adopted a cautious stance ahead of key Eurozone and US economic data that could influence interest rate ex...
The EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as exp...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...