Euro backs off nine-month high on profit-taking
2023-01-27 07:59AM UTC

Euro fell in European trade on Friday against dollar for a second session off nine-month highs on profit-taking.


Euro is heading for the third weekly profit in a row on prospects of a 0.5% rate hike by the ECB at both the February and March meetings. 


EUR/USD fell 0.25% to 1.0865, with a session-high at 1.0900, after falling 0.2% yesterday, the first loss in seven days on profit-taking away from nine-month highs at 1.0929. 


Dollar also rebounded from multi-month lows after positive US data, which bolstered the case for multiple more rate hikes. 


Euro is up 0.25% so far this week against dollar on track for the third weekly profit in a row. 




ECB President Christine Lagarde said recently that inflation remains too high and the bank is committed to continuously increase interest rates until inflation is brought back to 2%.


Lagarde once again repeated the use of the phrase "staying the course" when talking about interest rate decisions at upcoming meetings, meaning the current pace will be maintained at least until the second quarter of the year.


Other ECB members strongly hinted at multiple 0.5% rate hikes in both February and March.


The Dollar


The dollar index rose 0.2% on Friday for the second session off eight-month lows at 101.50 against a basket of major rivals. 


Recent data showed US economy grew in the fourth quarter more than expected, while unemployment claims hit nine-month lows. 




Despite euro's current decline, analysts still expect euro to gain ground above $1.1 in the short term, as the ECB prepares to increase interest rates by double the Fed's rate in February. 

Forex and Currency News

Forex News


The dollar declines after weak US data
2024-03-01 21:25PM UTC
The dollar declined against most major rivals on Friday following weak data and speculation about ...
EUR/USD news


Euro gains ground ahead of European inflation data
2024-03-01 08:14AM UTC
Euro rose in European trade on Friday against a basket of major rivals, holding above one-week lows ...
Forex News


Dollar edges up after inflation data
2024-02-29 21:46PM UTC
Dollar rose against most major rivals on Thursday following US inflation data, which could have an ...

Forex Technical Analysis

GBP USD Analysis


Midday update for the GBPUSD 01-03-2024
2024-03-01 10:39AM UTC
The GBPUSD pair keeps its stability below 1.2650, to keep the correctional bearish trend valid for ...
EUR USD Analysis


Midday update for the EURUSD 01-03-2024
2024-03-01 10:39AM UTC
The EURUSD pair fluctuates around the EMA50 since morning, and didn’t show any strong move ...
GBP USD Analysis


The GBPUSD breaks the support - Analysis - 01-03-2024
2024-03-01 08:47AM UTC
The GBPUSD pair faced clear negative pressure yesterday, as it broke 1.2650 level and closed the ...