Daily Forex News By XtreamForex

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EUR/GBP slips below 0.8750 after stronger UK Retail Sales


The EUR/GBP pair edged lower to around 0.8735 in early European trading on Friday. The Pound gained against the Euro following better-than-expected UK economic figures. Later in the day, markets will focus on the preliminary Purchasing Managers’ Index (PMI) reports from the Eurozone, Germany, and the United Kingdom.

Figures released by the Office for National Statistics (ONS) showed UK Retail Sales rose 1.8% month-on-month in January, up from 0.4% previously and well above the 0.2% increase economists had predicted. On a yearly basis, sales increased 4.5%, compared with 1.9% previously (revised from 2.5%), also beating the 2.8% forecast. The stronger data supported the Pound, drawing immediate buying interest.

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NZD/USD trims early advance while the US Dollar stays weak

The NZD/USD pair pulled back from its intraday highs during Monday’s early European session after meeting resistance near the key 0.6000 level. Even so, the pair remains slightly positive, trading around 0.5980, supported by a softer US Dollar amid fresh uncertainty surrounding US trade policy.

At the time of writing, the US Dollar Index (DXY), which measures the Greenback against six major currencies, has fallen about 0.35% to roughly 97.45.

The Dollar lost appeal after the US Supreme Court ruled President Donald Trump’s tariff policy unlawful. In response, Trump proposed a 15% global tariff plan to counter the impact of the ruling, increasing policy uncertainty.

Additional pressure on the Dollar comes from weak economic data. Fourth-quarter GDP figures disappointed, and the S&P Global Purchasing Managers’ Index (PMI) for February showed slower-than-expected growth, reinforcing concerns about economic momentum.

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EUR/USD rises toward 1.1800 as trade tensions pressure the US Dollar

The EUR/USD pair trades firmer near 1.1795 in early Asian trading on Tuesday, supported by a softer US Dollar (USD). Ongoing uncertainty surrounding US trade tariffs is weighing on the Greenback and helping the Euro (EUR) gain ground. Meanwhile, markets are also watching the US January Producer Price Index (PPI) report due later this week.

On Friday, the US Supreme Court invalidated several tariffs previously introduced by President Donald Trump. Despite the ruling, the administration signaled it will continue its trade stance and plans to introduce a fresh 15% tariff on Saturday.

In response, the European Union has taken a cautious approach. The European Parliament’s trade leadership indicated the EU may pause ratification of a trade agreement with the United States until greater clarity on Washington’s trade policy is provided. The renewed uncertainty around trade relations has pressured the USD and supported the currency pair.

European Central Bank (ECB) President Christine Lagarde stated Monday that policymakers must remain flexible when setting interest rates. She added that decisions will continue to be made on a meeting-by-meeting basis, noting that risks to the economic outlook currently appear balanced.

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GBP/USD Holds Firm Above 1.3500 After Trump’s State of the Union Address

The GBP/USD pair extends its advance for a fourth straight session, trading near 1.3510 during Wednesday’s Asian session. The Pound Sterling remains supported as the US Dollar stays under pressure following US President Donald Trump’s first State of the Union address of his second term before Congress.

In his speech, Trump claimed his administration had delivered a significant economic turnaround, pointing to easing inflation and a stronger economic backdrop. He also emphasized efforts to combat illegal immigration and restrict fentanyl trafficking across US borders. However, Trump signaled the possibility of raising tariffs on nations that challenge existing trade arrangements, particularly after the Supreme Court blocked several of his broad global tariff measures.

Despite the recent softness in the US Dollar, expectations that the Federal Reserve may maintain current interest rates for an extended period could limit further downside. Boston Fed President Susan Collins stated that keeping rates within the current range remains appropriate for now. Similarly, Richmond Fed President Thomas Barkin said policy settings are well-positioned to address economic uncertainties.

In the UK, economic data painted a weaker picture of the retail sector. The Confederation of British Industry (CBI) reported that its Retail Sales Balance declined sharply to -43 in February from -17 in January, falling short of expectations. Retail activity has been under strain since mid-2023, with February marking a notable drop. Businesses described seasonal trading as disappointing and anticipate continued pressure due to subdued consumer demand.

Meanwhile, Bank of England Governor Andrew Bailey told the Treasury Committee that a potential rate cut in March remains under consideration. He highlighted that services inflation stood at 4.4% in January, above the Bank’s forecast of 4.1%. Chief Economist Huw Pill also urged caution, noting that policymakers should not be overly encouraged by headline inflation moving closer to the 2% target.

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Canadian Dollar stays firm above 1.3650 as US tariff worries weigh on USD

The USD/CAD pair trades slightly lower near 1.3670 during Thursday’s early European session. The US Dollar weakens against the Canadian Dollar as uncertainty around US economic policy and renewed concerns over higher import tariffs pressure the Greenback. Investors are now awaiting Canada’s Gross Domestic Product (GDP) figures and the US Producer Price Index (PPI) report due on Friday.

On Wednesday, US Trade Representative Jamieson Greer said that President Donald Trump is considering increasing tariffs to 15% or more on several countries in the coming days. The authority would apply for up to 150 days unless Congress grants an extension. These remarks have reduced confidence in the US Dollar and encouraged selling pressure.

Ongoing geopolitical tensions may also support crude oil prices, which typically benefits the Canadian Dollar. Canada is a major oil exporter, so stronger oil prices usually strengthen the CAD. Traders are also watching developments in the US-Iran nuclear discussions, as officials from both countries are scheduled to meet in Geneva for another round of indirect talks.

Market attention now shifts to the US January PPI data. Economists expect producer inflation to rise 0.3% month-on-month, slower than December’s 0.5% increase. On a yearly basis, PPI is forecast to grow 2.6% compared to the previous 3.0%. However, a stronger-than-expected reading could reduce expectations of future rate cuts and provide short-term support to the US Dollar against the Canadian Dollar.


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EUR/USD edges higher near 1.1800 ahead of Germany’s flash inflation release

ian session on Friday, as investors await Germany’s preliminary inflation figures for February, including data from its major states.

Germany’s flash Harmonized Index of Consumer Prices (HICP) is projected to rise 0.5% month-on-month, recovering from a 0.1% decline in January. On an annual basis, inflation is expected to hold steady at 2.1%.

However, the German inflation reading is unlikely to significantly alter expectations for the Eurozone’s interest rate path. European Central Bank (ECB) President Christine Lagarde stated on Thursday, during her address to the European Parliament’s Committee on Economic and Monetary Affairs (ECON), that she remains confident inflation will stabilize around the ECB’s 2% target in the near term.

Regarding policy guidance, Lagarde emphasized that interest rate decisions will depend on the evolving inflation outlook and associated risks. She reiterated that the ECB will maintain a data-dependent, meeting-by-meeting approach when determining its monetary policy stance.

On the other side, the US Dollar softens slightly ahead of the release of the US Producer Price Index (PPI) data for January, scheduled for 13:30 GMT. The US Dollar Index (DXY), which measures the Greenback against six major currencies, is trading 0.1% lower near 97.65 at the time of writing.

Market participants will closely analyze the PPI report for fresh insights into inflation trends. Producer price data could meaningfully influence expectations for the Federal Reserve’s policy direction, especially as several Fed officials have recently supported keeping interest rates steady due to persistent inflation risks.

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EUR/USD trims intraday losses as oil surge offsets safe-haven demand for USD

The EUR/USD pair recovers part of its early decline during Monday’s late Asian session, though it remains down around 0.25% near the 1.1780 level.

Earlier in the session, the Euro came under heavy pressure against the US Dollar as investors rushed toward safe-haven assets following escalating tensions involving Iran, Israel, and the United States over the weekend. The intensifying geopolitical conflict triggered a broader risk-off sentiment across financial markets.

Multiple airstrikes and reported tanker attacks in the Strait of Hormuz have driven crude oil prices sharply higher. Rising energy costs pose a challenge for the Eurozone economy, which depends significantly on imported oil to meet its energy demands. Higher oil prices could weigh on growth prospects and keep pressure on the Euro in the near term.

On the economic front, traders are awaiting the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for February, scheduled for release on Tuesday. The inflation figures are expected to shape expectations regarding the European Central Bank’s (ECB) future monetary policy direction. Recent data showed that Germany’s flash HICP rose 2.0% year-on-year, slightly below both forecasts and the previous reading of 2.1%, signaling moderating price pressures.

Meanwhile, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, has eased from earlier highs but continues to trade about 0.23% higher near 97.85 as cautious market sentiment persists.

Looking ahead, investors will closely monitor key US labor market indicators this week, particularly the February Nonfarm Payrolls (NFP) report. In the near term, attention turns to the US ISM Manufacturing PMI data for February, due later in Monday’s session at 15:00 GMT, which could provide fresh direction for the Dollar.

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[xtrememarkets1]

EUR/USD trims intraday losses as oil surge offsets safe-haven demand for USD

The EUR/USD pair recovers part of its early decline during Monday’s late Asian session, though it remains down around 0.25% near the 1.1780 level.

Earlier in the session, the Euro came under heavy pressure against the US Dollar as investors rushed toward safe-haven assets following escalating tensions involving Iran, Israel, and the United States over the weekend. The intensifying geopolitical conflict triggered a broader risk-off sentiment across financial markets.

Multiple airstrikes and reported tanker attacks in the Strait of Hormuz have driven crude oil prices sharply higher. Rising energy costs pose a challenge for the Eurozone economy, which depends significantly on imported oil to meet its energy demands. Higher oil prices could weigh on growth prospects and keep pressure on the Euro in the near term.

On the economic front, traders are awaiting the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for February, scheduled for release on Tuesday. The inflation figures are expected to shape expectations regarding the European Central Bank’s (ECB) future monetary policy direction. Recent data showed that Germany’s flash HICP rose 2.0% year-on-year, slightly below both forecasts and the previous reading of 2.1%, signaling moderating price pressures.

Meanwhile, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, has eased from earlier highs but continues to trade about 0.23% higher near 97.85 as cautious market sentiment persists.

Looking ahead, investors will closely monitor key US labor market indicators this week, particularly the February Nonfarm Payrolls (NFP) report. In the near term, attention turns to the US ISM Manufacturing PMI data for February, due later in Monday’s session at 15:00 GMT, which could provide fresh direction for the Dollar.

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