European Central Bank

The euro continues to face difficult trading sessions in the short term. The European currency has been unable to stabilize a consistent recovery, and for now, a phase of indecision appears to be dominating its recent strength. This is reflected in the average movements of EUR/USD over the last 3 sessions, which have barely recorded an approximate price variation of 0.07%, showing a renewed neutral bias.

These remain difficult sessions for the euro in the short term. Despite the recovery attempt at the start of the week, EUR/USD is still down by a little more than 0.1% during the session and is once again trading below the 1.1400 area. This shows that the bearish bias has not fully disappeared in the short term.

As the trading week approaches its close, one of the main short-term developments is the euro’s loss of momentum. This is reflected in EUR/USD price action, with the pair down around -0.2% on the day and moving back toward the 1.15 area.

Markets expect the ECB to validate the recent significant hawkish repricing. Updated forecasts and Lagarde's tone may tell a different tale.

Next week brings the European Central Bank rate decision and the big question is whether the bank will be hiking rates in the coming months.

As the trading week comes to an end, EUR/USD has posted a gain of more than 0.3% during the final session, with the euro showing a modest recovery in strength in the short term. However, when looking at the average of recent sessions, price action continues to reflect a consistent phase of neutrality.

The week has not been favorable for euro price action in the short term. This is mainly due to the fact that, shortly after the Federal Reserve’s decision, EURUSD began to show renewed weakness.

EUR/USD started the week posting gains of more than 0.4% in favor of the euro, marking a renewed bullish bias toward the close of 2025. For now, buying pressure has managed to hold, as central bank dynamics in the United States and Europe have supported a weaker outlook for the U.S. dollar, allowing the euro to continue regaining ground in the short term.

The EUR/USD pair has accumulated a streak of four consecutive bullish sessions, holding a gain above 1%, which shows that, for now, buying pressure has returned to the pair ahead of the year-end. This renewed upside momentum observed in recent sessions has been supported by the weakness of the U.S. dollar following last week’s central bank comments and by expectations of a neutral stance from the European Central Bank in this week’s decision.

The EUR/USD pair has accumulated a streak of eight consecutive bullish sessions, gaining more than 1% from recent lows. Buying pressure has intensified following the release of new U.S. employment data, which reinforces expectations of lower interest rates in next week’s Federal Reserve decision.

Over the past five trading sessions, the EUR/USD pair has begun to show a steady upward movement, reflected in a recovery of more than 0.7%. For now, the buying pressure supporting the euro comes partly from the recent weakness in the U.S. dollar, along with a neutral stance from the European Central Bank (ECB)—factors that have allowed the European currency to regain ground consistently.

The EUR/USD was trading around 1.16 handle ahead of the ECB rate decision, bouncing back a tad following the Fed’s slightly hawkish press conference yesterday where Powell made it clear that another cut isn’t guaranteed. But risp appetite remains largely supported even if European markets pulled back a little this morning ahead of the European Central Bank rate decision shortly. US President Donald Trump called his meeting with China’s President Xi Jinping “amazing”, with both sides agreeing to roll back some export restrictions and trade barriers – though markets had more or less priced that in already, which is why we haven’t seen a major reaction.