- EUR/USD consolidates previous gains above 1.1700 after being rejected at the 1.1760 area.
- The “Sell America” trade takes a breather ahead of Trump’s speech at Davos.
- ECB President Christine Lagarde will also speak at the Davos Summit later on Wednesday.
EUR/USD is trading near 1.1728 at the time of writing, moderately higher in the daily chart and at a short distance from the nearly three-week highs, at 1.1765 reached on Tuesday. The Euro (EUR) consolidates previous gains with the US Dollar on the defensive, as investors hold their breath, ahead of US President Trump’s speech at the Davos Economic Summit, due later on the day.
The common currency has been drawing support from the Greenback’s weakness, with the market selling all US assets, after Trump threatened some European countries with additional tariffs for their opposition to his plans to purchase Greenland.
Investors are hoping that the meeting at the Davos World Economic Forum might help de-escalate tensions, although Trump’s idea of disclosing private messages from European leaders has done little to calm things down.
European Central Bank (ECB) President Christine Lagarde will also take the stage somewhat later, although her speech has been overshadowed by the rising geopolitical tensions.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.10% | 0.07% | -0.16% | 0.03% | -0.25% | -0.24% | 0.27% | |
| EUR | -0.10% | -0.02% | -0.26% | -0.07% | -0.35% | -0.31% | 0.17% | |
| GBP | -0.07% | 0.02% | -0.23% | -0.05% | -0.33% | -0.31% | 0.18% | |
| JPY | 0.16% | 0.26% | 0.23% | 0.19% | -0.09% | -0.07% | 0.42% | |
| CAD | -0.03% | 0.07% | 0.05% | -0.19% | -0.28% | -0.26% | 0.22% | |
| AUD | 0.25% | 0.35% | 0.33% | 0.09% | 0.28% | 0.02% | 0.53% | |
| NZD | 0.24% | 0.31% | 0.31% | 0.07% | 0.26% | -0.02% | 0.48% | |
| CHF | -0.27% | -0.17% | -0.18% | -0.42% | -0.22% | -0.53% | -0.48% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily Digest Market Movers: Investors sell US assets amid the EU-US rift
- Trump’s plans to take control of Greenland and his threat of additional tariffs to European countries opposing it have triggered sharp declines in the US Dollar and US Treasury bonds this week. The “Sell America” trade has taken a breather on Wednesday, with investors awaiting signs of de-escalation at the Davos meeting.
- Meanwhile, the European Parliament is considering suspending the trade deal with the US reached in July, in retaliation for threats over Greenland. “If he wants access to the single market at zero tariffs, be reliable,” said Manfred Weber, president of the European People’s Party on Tuesday.
- ECB’s Lagarde is widely expected to reiterate that the bank is in a good place to respond to economic uncertainty and hint at a steady monetary policy for the foreseeable future.
- The US Supreme Court is hearing arguments in the Lisa Cook case on Wednesday, in another open front of President Trump’s policy, his quest to gain control over the Federal Reserve’s Monetary Policy Committee.
- During the European Session, ECB Governor, Jose Luis Escrivá, affirmed that there are no reasons to cut interest rates further and that monetary policy is likely to remain steady in the coming months.
- In the economic calendar on Tuesday, the German ZEW Survey revealed that the investors’ sentiment about the German economy improved to 59.6 in January, its best reading in more than four years, from 45.8 in December, beating expectations of a 50 reading. The sentiment about the current situation has improved to -72.7 from -81 in the previous month, also above the -75.5 market consensus.
- In the US, the weekly ADP Employment Change showed an 8K increase in net jobs in the four weeks before December 27, down from 11.25K in the previous four weeks, confirming that employment creation remains at low levels.
Technical Analysis: EUR/USD consolidates gains above the 1.1700 area
EUR/USD recovery met resistance at the 78.6% Fibonacci retracement of the early January sell-off, at 1.1761, and is consolidating gains above the 1.1700 area at the time of writing. Technical indicators remain bullish. The Moving Average Convergence Divergence (MACD) holds above the zero line on the 4-hour chart, and the Relative Strength Index (RSI) prints 67, just shy of overbought territory, which reinforces a positive bias.
Immediate support is at the intra-day low of 1.1710, which closes the path towards Tuesday’s low, near 1.1630, and the January 16 low, at 1.1585.
On the upside, immediate resistance is in the area between the mentioned 76.8% Fibonacci retracement, at 1.1761, and the January 2 high at 1.1765. Further up, the target is the December 24 high, right above 1.1800.