The Euro experienced a 1.3% decline against the US Dollar, facing pressure amid a broader market shift towards the USD.
Despite positive German economic data, the Euro struggled to maintain its position.
Key data releases next week include US GDP and PCE inflation figures.
EUR/USD saw further losses on Friday as investors favoured the US Dollar over the Euro despite better-than-expected economic data from Germany. Various sentiment indicators from Germany, including those for consumers, investors, and businesses, surpassed forecasts, yet overall economic data from Europe remained a challenge for bullish sentiment.
Federal Reserve Chairman Jerome Powell addressed a Fed Listens event in Washington, DC, but refrained from discussing monetary policy matters, leaving investors seeking rate cuts with limited new information.
In the upcoming week, the market focus will be on Thursday’s US Gross Domestic Product (GDP) data and the Personal Consumption Expenditure (PCE) Price Index on Friday. Investors hoping for early Fed rate cuts will be watching for signs of easing US growth. The Core MoM PCE Price Index, a key inflation metric for the Fed, is expected to decrease from 0.4% to 0.3%.
Technical analysis indicates that EUR/USD reached a weekly high of 1.09426 on Thursday before sliding below 1.0800 by the end of Friday’s trading session. The pair retreated nearly 1.3%, reaching its lowest since early March. Daily candlesticks have fallen below the 200-day Exponential Moving Average (EMA) around 1.0820, suggesting a potential further decline towards the previous swing low near 1.0750.
