Image Source: Pixabay

• EUR/USD lost another 0.3% on Monday, falling back into 1.0300.
• US President Trump signed off on sweeping tariffs late Monday.
• US inflation data to dominate market flows this week.

EUR/USD declined around one-third of one percent on Monday, falling back into the 1.0300 handle as market sentiment takes a knee. Investors are awaiting clearer signals from central bank policymakers, but a fresh batch of executive orders from US President Donald Trump regarding tariffs make the outlook murkier.

European data is broadly limited this week; an appearance from European Central Bank (ECB) President Christine Lagarde failed to move the needle in any meaningful way, a routine outing that has become the norm for talking points from ECB policymakers. Federal Reserve (Fed) Chair Jerome Powell will be giving his latest testimony to the US Senate Banking Committee. Fed Chair Powell is expected to face questions about how the Fed will react to the ebb and flow of President Trump’s tariff threats.

German final Harmonized Index of Consumer Prices for the year ended January are due on Thursday, alongside pan-EU Gross Domestic Product figures for the fourth quarter slated for Friday. Neither datapoint is expected to move much.

The key datapoints this week will be US Consumer Price Index (CPI) inflation slated for Wednesday, and US Producer Price Index (PPI) due on Thursday.

EUR/USD price forecast
 

Three straight down days for EUR/USD has put the pair in pace to rediscover recent technical lows. Fiber flubbed a technical recovery above the 50-day Exponential Moving Average (EMA) in late January, and bids have been on a steady grind lower ever since. The 1.0200 handle is up next as the bears slowly crush bulls out of the picture.

EUR/USD daily chart
 

More By This Author: