The EUR/USD pair attracts some sellers in the vicinity of the 1.0800 mark, or the 100-day Simple Moving Average (SMA) and remains on the defensive through the first half of the European session on Friday. Spot prices, for now, seem to have snapped a three-day winning streak and stalled the recent recovery from a multi-month low touched earlier this week. The downside, however, remains cushioned in the wake of the recent hawkish remarks by several European Central Bank (ECB) officials and subdued US Dollar (USD) price action. 

Moreover, traders seem reluctant to place aggressive directional bets and seek more clarity about the Federal Reserve's (Fed) rate hike path. A slew of influential FOMC members recently pushed back against market expectations for early and steep rate cuts in 2024 in the wake of a still resilient US economy. This remains supportive of elevated US bond yields. The markets, however, are still pricing in five rate cuts over the course of the seven remaining FOMC policy meetings this year, which acts as a headwind for the USD and lends support to the EUR/USD pair. 

Meanwhile, the market focus will remain glued to the release of the latest US consumer inflation figures, due next week, which might provide some cues about the likely timing and pace of Fed rate cuts. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the EUR/USD pair. 

Daily Digest Market Movers: Traders seem reluctant ahead US inflation data next week

• The European Central Bank officials have been trying hard to temper market expectations for early interest rate cuts and lend some support to the EUR/USD pair amid subdued US Dollar demand.
• Governing Council member Pierre Wunsch said on Thursday that he would prefer to wait for more wage data, which is not compatible with the 2% inflation target, before deciding to cut rates.
• This comes on top of comments by ECB board member Isabel Schnabel on Wednesday, saying that the central bank must be patient with cutting interest rates as inflation could flare up again.
• Adding to this, the ECB's latest economic bulletin stated that the interest rate policy is unlikely to change before June despite the gloomy outlook that the Eurozone economy likely contracted in Q4.
• Expectations for the ECB interest rate cut at the start of the second quarter, however, have been growing stronger, which holds back traders from placing aggressive bullish bets around the shared currency.
• Data released on Thursday showed that US Initial Jobless Claims fell to 218K last week, pointing to a resilient labor market and reaffirming bets that the Federal Reserve will keep rates higher for longer.
• The uncertainty over the Fed rate cut path fails to provide any meaningful impetus to the US Dollar, which remains below a multi-month low and continues to act as a tailwind for the currency pair.

Technical Analysis: Once again fails ahead of 100-day SMA, bearish potential seems intact

From a technical perspective, any subsequent move beyond the 1.0800 mark is likely to meet with a fresh supply near the very important 200-day SMA, currently pegged near the 1.0830-1.0835 region. This should cap spot prices near a resistance marked by a one-month-old descending trend-line, around the 1.0860-1.0865 region. A sustained strength beyond, however, might shift the near-term bias in favor of bullish traders and lift the EUR/USD pair to the 1.0900 round figure. The momentum could get extended further towards the 1.0930 intermediate hurdle en route to the 1.0970-1.0975 region and the 1.1000 psychological mark.

On the flip side, the overnight swing low, around the 1.0740 zone, now seems to protect the immediate downside ahead of the 1.0725-1.0720 area, or a multi-month low touched earlier this week. This is closely followed by the 1.0700 mark, which if broken decisively will be seen as a fresh trigger for bearish traders and make the EUR/USD pair vulnerable. Spot prices might then accelerate the slide further towards the 1.0665-1.0660 support before eventually dropping to the 1.0620-1.0615 region and the 1.0600 round figure.

Euro price today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Swiss Franc.

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