Euro under pressure: EUR/USD slips below $1.04 amid dollar strength
Press Hub UCapital
Share:
The euro faced renewed selling pressure, slipping to $1.0370 before recovering slightly above the $1.04 mark. Market sentiment deteriorated following a contentious Oval Office meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky, which failed to produce a diplomatic breakthrough. As a result, traders shifted back toward the dollar, reinforcing its strength across the forex market.
The EUR/USD pair opened the week attempting to regain ground after three consecutive losing sessions. Initially trading near $1.0390, the euro fell below its 50-day moving average, a signal of short-term bearish momentum. The downward move was largely attributed to heightened geopolitical uncertainty, as Friday’s meeting in Washington underscored the fragile state of international negotiations.
Tensions escalated as discussions between Trump and Zelensky quickly deteriorated, with the U.S. president and Vice President JD Vance criticizing the Ukrainian leader’s stance on peace negotiations. The lack of progress heightened market uncertainty, fueling demand for the dollar as investors sought stability amid geopolitical turmoil. With no resolution reached, the greenback extended its gains, putting additional downward pressure on the euro.
Looking ahead, market participants are bracing for a week filled with high-impact economic data and central bank decisions. On Monday, the eurozone will release its February inflation figures, while the U.S. ISM Manufacturing Index is also due. The European Central Bank is widely expected to cut interest rates by 25 basis points on Thursday, a move that could weigh further on the euro. Friday will bring critical U.S. labor market data, with February’s nonfarm payrolls report set to provide fresh insights into employment trends. Adding to the volatility, Federal Reserve Chair Jay Powell is scheduled to speak, potentially shaping expectations for future monetary policy.
With geopolitical risks and key economic events on the horizon, traders will closely monitor developments in both Europe and the U.S. to assess potential market shifts. The euro remains vulnerable to further downside pressure, contingent on risk sentiment and central bank policy decisions.
The EUR/USD pair opened the week attempting to regain ground after three consecutive losing sessions. Initially trading near $1.0390, the euro fell below its 50-day moving average, a signal of short-term bearish momentum. The downward move was largely attributed to heightened geopolitical uncertainty, as Friday’s meeting in Washington underscored the fragile state of international negotiations.
Tensions escalated as discussions between Trump and Zelensky quickly deteriorated, with the U.S. president and Vice President JD Vance criticizing the Ukrainian leader’s stance on peace negotiations. The lack of progress heightened market uncertainty, fueling demand for the dollar as investors sought stability amid geopolitical turmoil. With no resolution reached, the greenback extended its gains, putting additional downward pressure on the euro.
Looking ahead, market participants are bracing for a week filled with high-impact economic data and central bank decisions. On Monday, the eurozone will release its February inflation figures, while the U.S. ISM Manufacturing Index is also due. The European Central Bank is widely expected to cut interest rates by 25 basis points on Thursday, a move that could weigh further on the euro. Friday will bring critical U.S. labor market data, with February’s nonfarm payrolls report set to provide fresh insights into employment trends. Adding to the volatility, Federal Reserve Chair Jay Powell is scheduled to speak, potentially shaping expectations for future monetary policy.
With geopolitical risks and key economic events on the horizon, traders will closely monitor developments in both Europe and the U.S. to assess potential market shifts. The euro remains vulnerable to further downside pressure, contingent on risk sentiment and central bank policy decisions.