EUR/USD Starts the Week in Upbeat Mood
EUR/USD – H4
The US Federal Reserve signaled rate hikes as early as March on Wednesday and the conclusion of its asset purchases program in the same month, while focus will shift to the European Central Bank (ECB) this week, as it hands down its monetary policy decision on Thursday.
The pair dropped after the Fed's decision, since the monetary policy differential works against it, but contained losses on Friday, despite US Core PCE inflation rising 4.9% y/y in December, compared to 4.7% prior.
On Sunday, Atlanta Fed President Raphael Bostic did not rule out a 50 bps rate hike if needed, on a Financial Times interview [1]. However, Mr Bostic is not a voter this year.
EUR/USD is in a good mood today, reacting from last week's plunge to the lowest level since June 2020. It tries to retake EMA100 (1.1200-10), which will ease downwards risk, but a catalyst will be needed in order to challenge mid-1.1200s and the descending trend-line form the January high.
Despite today's upbeat mood, the common currency is in a precarious position and vulnerable to 1.1120-1.1099, although 1.1049 looks distant at this stage.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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| Retrieved 19 Apr 2026 https://www.ft.com/content/5f6fae25-de70-4977-aeb7-271fa3af5bc3 |
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