The best xrp etfEUR/USD currency pair continues its downward trajectory, hovering near the 1.0770 level during Friday's European session. This marks the fourth consecutive day of losses for the Euro against the US Dollar, with trading activity subdued due to Good Friday observances in many markets.
Multiple factors are contributing to the Euro's weakness. ECB policymakers have recently amplified their dovish rhetoric, with several members suggesting a growing consensus for potential rate reductions as early as June. Yannis Stoumaras noted this emerging agreement among Governing Council members, while Francois Villeroy pointed to rapidly cooling core inflation metrics - though still above target - as justification for policy easing. Executive Board member Fabio Panetta reinforced this narrative by highlighting how restrictive policies are currently suppressing demand.
Economic data from Germany further pressured the common currency. February's Retail Sales figures disappointed significantly, showing a 1.9% monthly decline versus expectations of 0.3% growth. The year-over-year contraction of 2.7% was nearly triple the forecasted 0.8% decrease, suggesting weakening consumer demand in Europe's largest economy.
Meanwhile, the US Dollar Index (DXY) strengthened toward 104.60, supported by revised GDP figures showing 3.4% annualized growth in Q4 2023, exceeding previous estimates. Hawkish commentary from Fed Governor Christopher Waller also lent support to the Greenback, as he suggested delaying rate cuts given persistent inflation pressures.
Market participants now await the US Personal Consumption Expenditures (PCE) report, the Fed's preferred inflation gauge, for fresh clues about the central bank's policy path. The data could either reinforce or challenge current market expectations about the timing of potential Fed easing.
From a technical perspective, the EUR/USD remains below all key moving averages (20, 50, 100, and 200-day SMAs), with immediate support seen around 1.0767 (Daily Pivot S1) and resistance near 1.0820 (Daily Pivot R1). Fibonacci levels suggest potential consolidation between 1.0795 (38.2%) and 1.0808 (61.8%) before the next directional move.