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The Euro (EUR) traded softer on Wednesday after two days of strong gains, with price action reflecting shifting US political headlines and their impact on the US Dollar (USD) and bond yields. Early in the session, comments from US President Donald Trump that the US was seeking immediate talks on Greenland briefly supported the Greenback. That move was later reversed after Trump stated that the US would not use excessive force to obtain Greenland, followed by Denmark rejecting any negotiations over a takeover. As these headlines crossed, US bond yields fell alongside the US Dollar, allowing the Euro to stabilize after an initial pullback.

European fundamentals provided a steadier backdrop. Sentiment indicators, particularly from Germany, have helped reinforce the view that eurozone growth risks may be moderating. While the macro outlook remains uneven, improved confidence data has limited downside pressure on the euro, even as geopolitical developments drove intraday volatility. This has helped the single currency consolidate rather than unwind this week’s earlier gains.

Looking ahead to Thursday, focus turns to scheduled macro catalysts that may outweigh headline risk. In the eurozone, ECB monetary policy meeting accounts will be closely watched for guidance on inflation confidence and the future rate path. In the US, GDP revisions, inflation indicators, and weekly jobless claims are expected to shape rate expectations. Any divergence between US macro momentum and ECB policy messaging could meaningfully influence near-term EUR/USD direction.

EUR/USD price forecast

EUR/USD rallied strongly at the start of the week, gaining approximately 1.16 percent across Monday and Tuesday, before giving back around 0.2 percent on Wednesday, according to the current week’s daily candlestick structure. The mid-week pullback appears corrective rather than trend-changing, with the pair consolidating near recent highs rather than retracing the bulk of earlier gains.

From a broader perspective, the pair remains supported above key short-term levels, suggesting underlying resilience despite today’s softer close. Momentum indicators reflect cooling upside pressure rather than a reversal, consistent with a market that is pausing ahead of major data rather than aggressively re-pricing risk. Thursday’s economic releases may determine whether the euro resumes its advance or extends this consolidation phase.

EUR/USD daily chart

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