The EUR/USD currency pair has continued to recover, changing hands above 1.1250 in European trading on Thursday. The pair is establishing bullish momentum as it drag back erases losses. Traders are now looking ahead to a series of mid-tier U.S. economic data and remarks from Federal Reserve officials, seeking clues as to what may move the market next.
Such a EUR/USD corrective move lower came earlier in the week. Yet, it has quickly rebounded since, gaining critical footing as traders react to a highly-anticipated ruling by the U.S. Court of International Trade. This week, the U.S. Court of International Trade found that former President Donald Trump overstepped his authority with tariffs. This decision will have a direct effect on the strength of the U.S. dollar and indirectly affect the EUR/USD currency pair.
The euro is enjoying an impressive rebound. The weakening value of the U.S. dollar is providing a major uplift to this currency pair’s recovery. Another factor in this recovery has been a gradual easing of risk aversion among investors. Traders are recalibrating their books as the tale of market fundamentals continues to be written. That’s arguably made euro zone hostage-taking a little bit easier.
These factors make the upcoming U.S. economic data especially important to market participants. Analysts suggest that the results from these statistics, coupled with forthcoming comments from the Federal Reserve, will provide further direction for EUR/USD. Market watchers are thus eagerly watching U.S. economic indicators. They are interested in knowing how these might affect investor perceptions and the strength of the dollar.
In addition to economic data, the recent court ruling against Trump’s tariff plan has introduced uncertainty into the market, which could influence trading strategies related to the U.S. dollar. As the legal landscape surrounding tariffs remains in flux, traders are changing their view on future dollar strength.
As things stand, EUR/USD is clawing back territory above 1.1250, breaking free from its prior bearish corrective phase. Looking ahead, traders should pay attention to how this week’s U.S. data impacts the currency pair’s short and long-term direction. The combination of economic releases and commentary from Federal Reserve officials may provide essential insights into market sentiment and future movements in EUR/USD.