EUR/USD nudges higher as the US Dollar retreats further
بواسطة Guillermo Alcala
تاريخ النشر: 16 Jan 2026 | تاريخ التعديل: 16 Jan 2026
المقالات الشائعة
EUR/USD posts minor gains on Friday, trading at 1.1620 at the time of writing, after hitting six-week lows at 1.1593 in the previuous day.
- EUR/USD picks up to 1.1620 after hitting six-week lows at 1.1593.
- Strong US employment and manufacturing figures boosted the US Dollar on Thursday
- Fed officials Bostic and Schmid warned against cutting rates amid the high inflation levels.
EUR/USD posts minor gains on Friday, trading at 1.1620 at the time of writing, after hitting six-week lows at 1.1593 in the previuous day. The pair, however, is on track to complete a thee-week losing streak, as strong US economic data has cemented the view that the Federal Reserve (Fed) will keep interest rates unchanged in the coming months.
Figures released by the US Department of Labor on Thursday revealed that Initial Jobless Claims decreased against expectations to their lowest levels since November, easing some of the market's concerns about the labor market deterioration.
At the same time, releases of the New York Empire State Manufacturing Index and the Philadelphia Fed Manufacturing Survey showed readings well beyond expectations, highlighting a strong start to the year for the sector.
Eurozone figures released this Friday confirmed that German consumer Inflation eased to the European Central Bank's target of 2% YoY in December. In the US, the focus will be on December's Industrial Production data and the speeches from the Fed's Vice Chairs Michelle Bowman and Philip Jefferson.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.23% | -0.33% | -0.07% | -0.16% | -0.52% | -0.25% | |
| EUR | 0.14% | -0.10% | -0.20% | 0.06% | -0.02% | -0.37% | -0.10% | |
| GBP | 0.23% | 0.10% | -0.11% | 0.16% | 0.07% | -0.28% | -0.01% | |
| JPY | 0.33% | 0.20% | 0.11% | 0.28% | 0.17% | -0.19% | 0.09% | |
| CAD | 0.07% | -0.06% | -0.16% | -0.28% | -0.11% | -0.46% | -0.18% | |
| AUD | 0.16% | 0.02% | -0.07% | -0.17% | 0.11% | -0.36% | -0.08% | |
| NZD | 0.52% | 0.37% | 0.28% | 0.19% | 0.46% | 0.36% | 0.28% | |
| CHF | 0.25% | 0.10% | 0.00% | -0.09% | 0.18% | 0.08% | -0.28% |
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: US Dollar remains supported by strong data
- The US Dollar Index (DXY) is trimming gains on Friday but maintains its broader bullish trend intact. Recent US economic reflects a stronger economy, with stubbornly high inflation, prompting investors to dial down their bets for Fed monetary easing in the near-term.
- US Initial Jobless Claims declined to 198K in the week ending January 10, from 207K in the previous week, against the market expectations of an increase to 215K.
- The New York Empire State Manufacturing Index bounced up to a 7.7 reading in January following a 3.7 decline in December. This month's reading beat expectations of a more moderate improvement to 1, which shows a significant strengthening in the sector's business conditions.
- Likewise, the Philadelphia Fed Manufacturing Survey jumped to 12.6 in January from the -8.8 of the previous month, also beating expectations of a -2 reading. New orders and shipments moved higher, the employment index decreased, although showing an overall improvement from previous months, while prices remained above long-run averages.
- In this context, hawkish comments by Fed policymakers provided additional support to the US Dollar. Atlanta Fed President Raphael Bostic and Kansas Fed President Jeffrey Schmid reiterated the need to keep interest rates at restrictive levels as inflationary pressures remain high.
- In the Eurozone, on Friday, Germany's final Harmonized Index of Consumer Prices confirmed that inflation eased to 0.2% in December and to 2.0% in the previous 12 months, after -0.5 and 2.6% respective readings in November. The Euro ticked up from lows following the data release.
Technical Analysis: EUR/USD is trying to break resistance in the 1.1620 area
EUR/USD has bounced up from lows and is attempting to confirm above a previous support level, near 1.1620. The Moving Average Convergence Divergence (MACD) is attempting to cross above the Signal line, and the Relative Strength Index (RSI) has risen to 40 reaching a neutral area and highlighting a fading bearish momentum.
A confirmation above 1.1621 (January 12 lows), would shift the focus towards the the channel top in the 1.1665 area. To the downside, immediate support is at Thursday's low, near 1.1590, and the channel's bottom, now at the 1.1585 area. Further down, the target is the late-November lows near 1.1560.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
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