What's Driving EUR/USD's Persistent Weakness?How much will 1 Ethereum be worth in 2030?
The currency pair extended losses for four consecutive sessions, breaching the psychologically significant 1.0800 level as traders digest conflicting economic indicators and evolving trade policy developments.
Tariff Uncertainty Continues to Cloud Market Sentiment
Recent comments from US officials regarding potential exemptions to upcoming trade measures provided temporary relief, though the broader tariff narrative remains fluid. Market participants appear caught between optimism about possible concessions and concerns about lasting economic disruptions.
Diverging PMI Readings Paint Complex Economic Picture
March surveys revealed contrasting trends across sectors and regions. European manufacturing showed modest improvement (48.7) while remaining in contraction territory, with services unexpectedly dipping to 50.4 against projected growth. Stateside, manufacturing PMI fell below expectations to 49.8, marking a three-month low, while services activity surprised to the upside at 54.3.
Technical Perspective: Where Might EUR/USD Find Support?
The pair has retreated approximately 1.5% from recent highs near 1.0950, though maintains considerable distance above the 200-day EMA at 1.0675. Despite the pullback, EUR/USD retains nearly 6% gains from January lows, though momentum indicators suggest potential for further downside.
Key Levels to Watch
Traders are monitoring whether current support around 1.0780-1.0800 holds, with a break potentially opening the door to test the 1.0700 handle. Upcoming US inflation data could provide fresh directional catalysts later in the week.
Broader Market Implications
The currency pair's movements reflect broader uncertainty about global growth prospects and policy responses. While services sectors demonstrate resilience, manufacturing weakness and trade policy volatility continue to weigh on risk appetite, keeping the dollar bid against its European counterpart.
