- EUR/USD pair fell to approximately 1.0470 after the initial of the initial PINA Procurement Manager Index for February and its main countries.
- The purchasing manager in the euro area expanded at a fixed rate of 50.2 in February.
- Investors expect that the Trump agenda on definitions will not harm the economy more than expected.
EUR/USD pair fell to approximately 1.0470 during the European trading session on Friday. The pair declined after the initial Puritan Procurement Manager Index from Hamburg Commercial Bank (HCOB) for the month of February for the eurozone and its main countries. The Euro Purchasing Manager Index, prepared by Standard & Poor’s global, showed that general commercial activity expanded with a fixed but slower rate than expected. The purchasing manager index reached 50.2 for 50.5 estimates.
The report showed that the manufacturing manufacturers index continued to shrink. However, the pace of decline in economic data was slower than previous estimates and reading. At the same time, activities in the services sector expanded. The pace of providing data was surprising and slower than the previous version.
“The economic output in the euro area is barely moving at all. Moderate recession in the manufacturing sector is barely compensated through growth that is hardly noticed in the services sector. There is definitely hope for a German government that will be Creating action after the elections, which should also provide a positive boost to the euro area as a whole. This is through a relatively unstable situation in France and a customs customs policy that spreads uncertainty. Therefore, these numbers are not yet referring to a recovery in the euro area.
Fixed growth in the data of the PMI is the euro area of the Puritan Manager Index for the European Central Bank officials (ECB), who were concerned about the upward risks of economic growth. Traders priced three other cuts in interest rates by the European Central Bank this year. The European Central Bank also reduced the interest rate on deposit facilities by 25 basis points to 2.75% last month.
In today’s session, investors will also focus on the data of the initial PMI Procurement Directors Index from Standard & Poor’s International for the United States for the month of February, which will be issued at 14:45 GMT.
Daily Market engines: EUR/USD pair faces pressure while the US dollar seeks to achieve strong stability
- The Euro/USD/USD pair is struggling to maintain the gains on Thursday near the psychological level 1.0500 while the US dollar (USD) seeks to restore its strength after registering its lowest level since the beginning of the year (YTD), with the US dollar index high to 106.65 from 106.30.
- On Thursday, the US dollar faced sharp sales with the improvement of the market mood. Investors expect that the agenda of definitions set by US President Donald Trump will not be more terrifying than the market had expected.
- To date, President Trump has imposed 25% definitions on steel and aluminum, and 10% on all imports from China, and threatened to impose mutual definitions, with a tax of 25% on cars, electronic chips and medicines by April. Market participants expected that Trump would soon impose definitions after returning to the White House.
- It seems that the ambiguity surrounding President Trump’s definitions has given time to American trade partners to negotiate a deal with him, which may limit the impact of definitions on their economies. On Thursday, the European Union, President of the European Union Trade, said that the United States showed some willingness to reduce the definitions mutually. The comments of Sepkovic came after a long meeting with Trump’s senior officials. He added that his first priority is to avoid the economic pain of both countries.
- Away from the Trump agenda on definitions, the increasing optimism about the truce between Russia and Ukraine also affected the US dollar. President Trump has agreed to hold more talks with Russia, including Ukraine and Europe, to end the war. On Thursday, the US Treasury Secretary said that the president is committed to ending the war “quickly” and added that Russia may see some sanctions in exchange for negotiating its war with Ukraine.
- At the level of monetary policy, Federal Reserve officials (Fed) were directing a restricted monetary policy amid concerns about the risks of inflation due to Trump’s economic agenda.
Technical analysis
EUR/USD pair fell slightly to nearly 1.0470 during the European trading hours on Friday after he visited his highest level in three weeks at 1.0500 on Thursday. The 50 -day Si -moving average continues to provide support to the main pair around 1.0436.
The RSI (RSI) index is struggling for 14 days to penetrate the level of 60.00. The bullish momentum will activate if the RSI index (RSI) can maintain this level.
Looking down, the lowest level on February 10 will be at 1.0285 as the main support area of the husband. On the contrary, the highest level on December 6 will be at 1.0630 is the main barrier of euro bulls.
2025-02-21 10:18:33