Recent Performance:
The euro has recorded its strongest weekly performance against the U.S. dollar since 2009, appreciating over 4.5%. This surge is attributed to investor optimism surrounding Germany's anticipated fiscal stimulus plan, which is expected to bolster the Eurozone economy. Chancellor-in-waiting Friedrich Merz's announcement of substantial investments in defense and infrastructure has further fueled expectations of economic recovery in Europe. In contrast, concerns over the U.S. economy, exacerbated by aggressive trade policies, have contributed to the euro's strength.
U.S. Economic Indicators:
The U.S. labor market has shown signs of softening. In February, the economy added 151,000 jobs, falling short of the anticipated 160,000, and the unemployment rate edged up to 4.1% from 4%. Additionally, wage growth has decelerated, raising concerns about consumer spending and overall economic momentum.
Technical Analysis:
The EUR/USD pair has reached a four-month high, with technical indicators suggesting overbought conditions. This scenario may lead to a short-term pullback before the uptrend potentially resumes. Traders are advised to monitor key support and resistance levels closely to identify potential entry and exit points.