The EUR/USD pair is trading almost flat on daily charts after recovering from the 1.1300 region.
As investors become more cautious due to the FOMC minutes, the dollar declines.
With the 1.1260 support in focus, the Euro is seeing increasing bearish momentum.
During Wednesday's European session, the EUR/USD has recovered some of its lost territory. In anticipation of the Fed's May meeting minutes, investors reduced their long positions in the US dollar, and the pair recovered above 1.1330 after finding support in the 1.1300 region.
In earlier sessions, the US dollar (USD) had been rising steadily, helped along by a notable rebound in US consumer confidence, which had been declining for the preceding six months. Additionally, the survey found that fewer Americans now anticipate a recession in the near future.
These numbers counterbalanced the drop in US durable goods orders in April, demonstrating the detrimental effects of US President Donald Trump's disorganized tariff strategy on manufacturing and business.
Beyond that, Trump's decision to postpone tariffs on goods from the Eurozone continues to boost market mood. As concerns about a new front in the trade war and its possible effects on global economic growth have subsided, the US Dollar Index (DXY) has recovered almost 1% from one-month lows.
François Villeroy, a member of the European Central Bank (ECB), stated that the bank has more leeway to lower interest rates in the Eurozone after US Consumer Confidence statistics failed to impress. The Euro was under further negative pressure as a result.
Daily digest market movers: A stronger US dollar hurts the euro
Consumer confidence recovered less strongly than anticipated in April, rising 0.3% from a 1.1% loss in March, according to data from France released on Wednesday. The market had anticipated a 0.8% rise.
Nonfarm Payrolls in France fell 0.1% against predictions of a level reading, while the Q1 GDP confirmed the meager 0.1% growth previously anticipated.
The unemployment rate in Germany has stayed at 6.3%, while the net change in employment has decreased by 34K, which is more than three times the predicted 11K. Overall, the data is not the most encouraging for the Euro.
The US Conference Board's Consumer Confidence Index increased from 85.7 in April to 98.0 in May on Tuesday. While concerns about a recession in the upcoming year decreased, the survey revealed better expectations for income, employment, and business conditions.
However, due to a reduction in aircraft demand, the headline figure for US Durable Goods Orders fell by 6.3%. The US dollar's recovery was not hampered by April's figures, which came in somewhat better than the market-expected 7.9% decline.
Today's main event will be the publication of the minutes from the most recent Federal Reserve (Fed) meeting, which may offer more hints regarding the central bank's upcoming monetary policy actions.
Technical analysis: EUR/USD is targeting the 1.1260 level after breaking the trendline support.
Following the impetuous surge last week, the EUR/USD is correcting lower. Bears are targeting support around 1.1255, the May 22 low, ahead of the May 19 lows at 1.1220, as the pair's reversal has extended below the bottom of the ascending channel.
The pair may retest the reverse trendline, which is currently around 1.1345, before continuing to decline. The next barrier above this can be found at the highs of May 27 and 26, which are 1.1400 and 1.1420, respectively.
As investors become more cautious due to the FOMC minutes, the dollar declines.
With the 1.1260 support in focus, the Euro is seeing increasing bearish momentum.
During Wednesday's European session, the EUR/USD has recovered some of its lost territory. In anticipation of the Fed's May meeting minutes, investors reduced their long positions in the US dollar, and the pair recovered above 1.1330 after finding support in the 1.1300 region.
In earlier sessions, the US dollar (USD) had been rising steadily, helped along by a notable rebound in US consumer confidence, which had been declining for the preceding six months. Additionally, the survey found that fewer Americans now anticipate a recession in the near future.
These numbers counterbalanced the drop in US durable goods orders in April, demonstrating the detrimental effects of US President Donald Trump's disorganized tariff strategy on manufacturing and business.
Beyond that, Trump's decision to postpone tariffs on goods from the Eurozone continues to boost market mood. As concerns about a new front in the trade war and its possible effects on global economic growth have subsided, the US Dollar Index (DXY) has recovered almost 1% from one-month lows.
François Villeroy, a member of the European Central Bank (ECB), stated that the bank has more leeway to lower interest rates in the Eurozone after US Consumer Confidence statistics failed to impress. The Euro was under further negative pressure as a result.
Daily digest market movers: A stronger US dollar hurts the euro
Consumer confidence recovered less strongly than anticipated in April, rising 0.3% from a 1.1% loss in March, according to data from France released on Wednesday. The market had anticipated a 0.8% rise.
Nonfarm Payrolls in France fell 0.1% against predictions of a level reading, while the Q1 GDP confirmed the meager 0.1% growth previously anticipated.
The unemployment rate in Germany has stayed at 6.3%, while the net change in employment has decreased by 34K, which is more than three times the predicted 11K. Overall, the data is not the most encouraging for the Euro.
The US Conference Board's Consumer Confidence Index increased from 85.7 in April to 98.0 in May on Tuesday. While concerns about a recession in the upcoming year decreased, the survey revealed better expectations for income, employment, and business conditions.
However, due to a reduction in aircraft demand, the headline figure for US Durable Goods Orders fell by 6.3%. The US dollar's recovery was not hampered by April's figures, which came in somewhat better than the market-expected 7.9% decline.
Today's main event will be the publication of the minutes from the most recent Federal Reserve (Fed) meeting, which may offer more hints regarding the central bank's upcoming monetary policy actions.
Technical analysis: EUR/USD is targeting the 1.1260 level after breaking the trendline support.
Following the impetuous surge last week, the EUR/USD is correcting lower. Bears are targeting support around 1.1255, the May 22 low, ahead of the May 19 lows at 1.1220, as the pair's reversal has extended below the bottom of the ascending channel.
The pair may retest the reverse trendline, which is currently around 1.1345, before continuing to decline. The next barrier above this can be found at the highs of May 27 and 26, which are 1.1400 and 1.1420, respectively.
