- EUR/USD trades at around 1.1700 in the European session on Wednesday.
- The near-term technical outlook highlights a loss of bullish momentum.
- The US economic calendar will feature producer inflation data.
EUR/USD struggles to regain its traction in the European session on Wednesday and trades in a tight range near 1.1700 after closing in negative territory on Tuesday. August producer inflation data from the US could trigger the next directional action in the pair.
Euro Price This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | -0.12% | -0.49% | 0.18% | -0.71% | -0.72% | -0.02% | |
| EUR | -0.16% | -0.28% | -0.57% | 0.02% | -0.86% | -0.82% | -0.18% | |
| GBP | 0.12% | 0.28% | -0.38% | 0.30% | -0.58% | -0.55% | 0.11% | |
| JPY | 0.49% | 0.57% | 0.38% | 0.60% | -0.25% | -0.38% | 0.49% | |
| CAD | -0.18% | -0.02% | -0.30% | -0.60% | -0.79% | -0.84% | -0.20% | |
| AUD | 0.71% | 0.86% | 0.58% | 0.25% | 0.79% | 0.03% | 0.69% | |
| NZD | 0.72% | 0.82% | 0.55% | 0.38% | 0.84% | -0.03% | 0.66% | |
| CHF | 0.02% | 0.18% | -0.11% | -0.49% | 0.20% | -0.69% | -0.66% |
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).
After touching its highest level since late July at 1.1780 on Tuesday, EUR/USD reversed its direction in the second half of the day as the US Dollar (USD) held resilient against its rivals.
Although the immediate reaction to the preliminary benchmark revision to US employment data, which showed that total nonfarm employment in March 2025 was 911,000 less than initially reported, caused the USD to weaken, the currency managed to shake off the bearish pressure.
The risk-averse market atmosphere on escalating geopolitical tensions in the Middle East and possibly a ‘buy the rumor sell the fact’ action after the employment data revision helped the USD hold its ground.
The Producer Price Index (PPI) in the US is forecast to rise by 0.3% on a monthly basis in August and it is expected to increase by 3.3% for the 12-month period. In case the monthly PPI reading is 0.5% or higher, the USD could gather strength and cause EUR/USD to stretch lower. On the other hand, a print at or below the market estimate could have the opposite impact on the pair’s action.
Nevertheless, ahead of the European Central Bank’s (ECB) monetary policy announcements and the Consumer Price Index (CPI) data from the US on Thursday, investors could refrain from taking large positions.
EUR/USD Technical Analysis
EUR/USD closed the last four 4-hour candles below the 20-period Simple Moving Average (SMA) and the Relative Strength Index (RSI) indicator fell below 50, reflecting a lack of buyer interest.
On the downside, 1.1670, where the 20-day and the 50-day Simple Moving Averages (SMAs) are located, aligns as a key support level before 1.1640-1.1630 (200-period SMA, lower limit of the ascending regression channel) and 1.1600 (static level, round level).
Looking north, resistance levels could be spotted at 1.1730 (20-period SMA), 1.1760 (static level, round level) and 1.1790-1.1800 (upper limit of the ascending channel, static level).
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.
