EUR/USD corrects lower amid a broad-based US Dollar strength
- The Euro retreats from weekly highs, and the US Dollar picks up on speculation that Governor Waller might be the next Fed Chair.
- Fed Bostic warned about the impact of tariffs and cooled hopes of a September rate cut.
- EUR/USD found resistance at 1.1700 and is correcting lower.
The EUR/USD pair slides from one-week highs right above 1.1700, trading at 1.1640 ahead of the US session opening on Friday, as the US Dollar bounces up on the back of news mentioning Christopher Waller as a top candidate to replace Jerome Powell as the Federal Reserve (Fed) Chairman.
Bloomberg reported on Thursday that the members of US President Donald Trump’s team were impressed after a meeting with the Fed Governor Christopher Waller, although he had not met the president yet.
Waller was appointed by Trump to the bank’s Board during his first term. He has been a notorious voice for lower interest rates recently, but he is a highly respected figure in financial circles, and his appointment is not expected to damage the central bank’s credibility.
Meanwhile, the name of Stephen Miran, chair of the Council of Economic Advisors, sounds like Trump’s favourite candidate to serve on the central bank’s board until January in the seat vacated by Governor Adriana Kugler. Miran will almost certainly have a vote at the September, October, and December meetings, and his choice is seen as a maneuver to pursue Trump’s desires of an easier monetary policy.
On the macroeconomic front, data released on Thursday showed that U.S. Jobless Claims increased above expectations last week. Atlanta Fed President Raphael Bostic acknowledged the growing risks for the US labour market, but he said that it is too soon to commit to a rate cut in September.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.30% | 0.03% | 0.37% | -0.11% | 0.03% | -0.06% | 0.27% | |
| EUR | -0.30% | -0.23% | 0.12% | -0.37% | -0.23% | -0.25% | -0.01% | |
| GBP | -0.03% | 0.23% | 0.36% | -0.14% | -0.09% | 0.11% | 0.15% | |
| JPY | -0.37% | -0.12% | -0.36% | -0.46% | -0.40% | -0.39% | -0.07% | |
| CAD | 0.11% | 0.37% | 0.14% | 0.46% | 0.16% | 0.22% | 0.34% | |
| AUD | -0.03% | 0.23% | 0.09% | 0.40% | -0.16% | 0.07% | 0.17% | |
| NZD | 0.06% | 0.25% | -0.11% | 0.39% | -0.22% | -0.07% | 0.18% | |
| CHF | -0.27% | 0.01% | -0.15% | 0.07% | -0.34% | -0.17% | -0.18% |
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: US Dollar upside attempts remain limited with the Fed on Focus
- The Dollar has ticked up from lows, but investors remain wary of placing large US Dollar bets amid the uncertainty about the next Fed head and amid recent data pointing to the softening of the labour market. which adds pressure on the central bank to cut interest rates.
- US Jobless Claims increased to 226,000 in the last week of July, according to data from the US Department of Labor. These figures exceed the 221,000 forecasted by market analysts, following a 218,000 reading in the previous week.
- Also on Thursday, Q2 Nonfarm Productivity data showed a weaker-than-expected 2.4% rise, while Unit Labour Costs increased 1.6%, slightly above the 1.5% expected, but still at levels considered moderate.
- Fed’s Bostic held a cautious tone in a virtual panel organized by the Florida Institute of CFOs, warning about the inflationary impact of tariffs and forecasting only one rate cut in the second half of 2025.
- News that Trump will meet Russian President Putin next week is feeding hopes of a peace deal in Ukraine, which has provided additional support to the Euro over the last few sessions.
- The calendar is thin on Friday with only a speech by the St. Louis Fed President, Alberto Mussalem, worth mentioning during the American session.
Technical Analysis: EUR/USD bulls met resistance at 1.1700
EUR/USD found resistance at 1.1700 on Thursday before trimming some gains, but is still on track for a 0.5% weekly gain. The 4-hour Relative Strength Index (RSI) is turning lower but still within bullish levels, while the MACD is crossing below the signal line, suggesting a further correction on Friday.
Support at the 1.1595-1.1610 area (Thursday’s low, August 3 and 5 highs) is expected to defend the immediate bullish trend. Further down, the next targets would be the August 5 low at around 1.1530 and the July 31 high at 1.1460.
On the upside, the area between 1.1700-1.1710, where the 78.6% Fibonacci retracement of the late-July sell-off meets July 23 and 25 lows, and the trendline resistance now at 1.1745, is likely to pose a significant challenge for bulls. Further up, the July 24 high at 1.1790 would come into focus.
