Speaking of currencies, on Monday the Euro (EUR) basically rocketed. This increase happened despite the fact that the German IFO Business Climate index rose less than analysts had expected in March. During the European session, the EUR exploded higher to near 1.0830. This increase followed a loss for the US Dollar, which was caused by fresh tariff-related developments. This sharp movement stopped a three day losing streak for the Euro. It was fueled by market speculation that the US Federal Reserve would soon resume a rate-cutting cycle.
Tuesdays US macroeconomic data and comments from Federal Reserve officials continue to be in the investors’ limelight for more directional clues. Recent statements by U.S. President Donald Trump have helped to shape the EUR’s course. Instead, they’ve focused on building up the currency’s momentum. The hope for a formal peace deal between Russia and Ukraine has really changed the market mood. The swoon in happiness is raising the Euro’s value.
The EUR was walking in a firmer tone, showing the bottom at 1.2950 during the Tuesday European session. It has beautifully jumped above the falling channel resistance at $3023. This unprecedented development indicates we can expect higher volatility for both the dollar and the price of gold in dollars. Analysts aren’t ruling out any pullback where the EUR would retest its nearby support floor at $3,018-$3,012.
The Euro is catching a wave of support from a softer US Dollar as traders position for a resumption of the Fed’s rate-cutting cycle. The next major resistance cluster is located between $3,038 and $3,047, with additional resistance at $3,057. At the same time, support is determined at $2,950, beneath which larger support prices level down.