{"id":38550,"date":"2026-01-08T12:06:35","date_gmt":"2026-01-08T04:06:35","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=38550"},"modified":"2026-01-08T12:06:35","modified_gmt":"2026-01-08T04:06:35","slug":"eur-usd-extends-losses-as-strong-us-data-boosts-the-dollar","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/eur-usd-extends-losses-as-strong-us-data-boosts-the-dollar\/","title":{"rendered":"EUR\/USD Extends Losses as Strong US data Boosts the Dollar"},"content":{"rendered":"\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EUR\/USD extends losses as ISM Services PMI and stronger US hiring bolster dollar demand.<\/li>\n\n\n\n<li>Eurozone inflation has reached the ECB\u2019s 2% target, easing pressure for policy changes and weighing on the euro.<\/li>\n\n\n\n<li>Traders await Eurozone sentiment data and US job cuts and jobless claims for fresh direction.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/codeZDJiMmE3YzEzOGE3OTNhNDRiMmFlNjI4MmJmNTdhM2ZfY2YyYmpORXdFaWQycHlmUFVNNEJlQlU1a0FmODhRMGFfVG9rZW46UjRNM2JXek56b0pBeGx4TGRxbGwzeUVkZ1FiXzE3Njc4NDUwNDE6MTc2Nzg0ODY0MV9WNA.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>EUR\/USD extended its losses for a third session, down around 0.10%, as the dollar strengthened on a robust ISM PMI reading and solid US jobs data. Meanwhile, Eurozone inflation eased and stayed close to the ECB\u2019s target, weighing on the single currency. The pair trades near <strong>1.1677<\/strong> and looks set to close below 1.1700.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US factory sector contracts for 10th straight month in December <a href=\"https:\/\/t.co\/fbPgNNMTfu\">https:\/\/t.co\/fbPgNNMTfu<\/a> <a href=\"https:\/\/t.co\/fbPgNNMTfu\">https:\/\/t.co\/fbPgNNMTfu<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2008313847002669324?ref_src=twsrc%5Etfw\">January 5, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In Europe, the bloc\u2019s Harmonised Index of Consumer Prices (HICP) rose at an annual rate of 2%, meeting the ECB\u2019s target, while underlying HICP remained slightly elevated. Combined with disappointing German retail sales data for November, this pressured the euro.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Euro zone economy ends 2025 on benign note even as risks linger <a href=\"https:\/\/t.co\/1Zqi16waLd\">https:\/\/t.co\/1Zqi16waLd<\/a> <a href=\"https:\/\/t.co\/1Zqi16waLd\">https:\/\/t.co\/1Zqi16waLd<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2008937958271836269?ref_src=twsrc%5Etfw\">January 7, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>For now, EUR\/USD is being driven more by incoming US data and the dollar\u2019s tone than by fresh developments in the euro area. Until the Fed provides clearer signals on how far it is willing to ease policy, or Europe shows more convincing signs of cyclical momentum, any upside in the pair is likely to be gradual rather than dramatic.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>EUR\/USD is trading around <strong>1.16790<\/strong> in Thursday\u2019s Asian session. Price remains below the moving averages, signalling bearish momentum, and the widening gap between them suggests the euro is notably weaker than the dollar and could extend lower.<\/p>\n\n\n\n<p>The next support sits near 1.16500. If the pair breaks below this level, it may open the door to further downside.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/codeZDYzNjZjYjU0M2ViNGNmZTg0ZGU2NTc3NDgyNjQ4NmFfSlBGZzgzWEhlMDhPT0U0YW1aTnljNVVEcDlUUThrYlVfVG9rZW46RkJZZGJmM1dUb0JMYU14U25oNWw3czVoZ3ZlXzE3Njc4NDUwNDE6MTc2Nzg0ODY0MV9WNA.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>The MACD signal line remains in negative territory, below the 50 level, and the histogram has been printing bearish bars for some time. This suggests EUR\/USD is firmly bearish and is not offering attractive long opportunities unless the trend shifts.<\/p>\n\n\n\n<p>Short setups have a higher probability, but it is generally better to wait for a retracement before looking to sell.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Outlook as Fed Stays on Hold<\/h2>\n\n\n\n<p>From a monetary policy standpoint, the mixed data keeps the Federal Reserve in a wait-and-see mode ahead of its 27\u201328 January meeting. Stronger services activity argues against a swift move towards aggressive easing, but signs of labour-market cooling still support the case for gradual rate cuts. Markets remain broadly aligned with a cautious easing path, with traders currently pricing in around two rate cuts in 2026.<\/p>\n\n\n\n<p><strong>Learn more about <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/markets\/\">trading<\/a><\/strong><strong> on <\/strong><strong><a href=\"http:\/\/www.vtmarkets.com\/trade-now\">VT Markets<\/a><\/strong><strong>.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EUR\/USD slipped for a third day as the dollar firmed on strong ISM PMI and jobs data. | VT Markets<\/p>\n","protected":false},"author":67,"featured_media":38552,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[9,86,87,85,81],"class_list":["post-38550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-eur","tag-europe","tag-united-states","tag-usd"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=38550"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/38552"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}