EUR/USD extends losses on Friday’s European session, trading at the 1.1730 area at the time of writing after having peaked at above 1.1800 in late December. The disappointing manufacturing activity figures in the Eurozone and some of its main economies have increased bearish pressure on the Euro, in an otherwise calm New Year’s session.
From a wider perspective, however, the pair remains at a relatively short distance from the three-month highs at 1.1808 seen right before Christmas. The US Dollar USD) depreciated about 14% against the Euro in 2025, weighed by market concerns about US President Donald Trump’s erratic trade policies, signs of deceleration in the US economy, and, lately, also the monetary policy divergence between the European Central Bank (ECB) and the US Federal Reserve (Fed).
The final German and Eurozone’s HCOB Manufacturing Purchasing Managers Index (PMI) figures highlight the declining contribution of manufacturing activity in the regions’ Gross Domestic Product. Investors are now looking at the final US S&P Manufacturing PMI release, which might provide some fresh impetus to the Greenback.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.21% | 0.12% | -0.02% | -0.05% | -0.35% | -0.34% | -0.03% | |
| EUR | -0.21% | -0.14% | -0.13% | -0.16% | -0.52% | -0.45% | -0.14% | |
| GBP | -0.12% | 0.14% | 0.00% | -0.06% | -0.38% | -0.31% | 0.00% | |
| JPY | 0.02% | 0.13% | 0.00% | -0.14% | -0.46% | -0.38% | -0.01% | |
| CAD | 0.05% | 0.16% | 0.06% | 0.14% | -0.33% | -0.24% | 0.03% | |
| AUD | 0.35% | 0.52% | 0.38% | 0.46% | 0.33% | 0.07% | 0.38% | |
| NZD | 0.34% | 0.45% | 0.31% | 0.38% | 0.24% | -0.07% | 0.31% | |
| CHF | 0.03% | 0.14% | -0.00% | 0.00% | -0.03% | -0.38% | -0.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily Digest Market Movers: Euro dives following weak manufacturing data
- The Euro is losing ground against its main peers on Friday, following a string of weaker-than-expected manufacturing activity figures in Europe. Eurozone HCOB Manufacturing PMI has been revised down to 48.8 from the preliminary estimation of a 49.2 reading in December, reflecting a faster contraction from the 49.6 reading seen in November and the 50.0 in October.
- Likewise, the German HCOB Manufacturing PMI has shown a weaker-than-expected activity, as December’s decline has been revised down to 47.0, from the 47.7 preliminary estimation, and from November’s 48.2 reading.
- Italy’s Manufacturing PMI dropped to 47.9 in December, from 50.6 in November, and Spain’s manufacturing activity declined to 49.6 from 51.5. The positive exception has been the French Manufacturing PMI, which ticked up to 50.7 from 50.6 in November.
- Later on Friday, the focus will shift to the US S&P Global Manufacturing PMI, whose preliminary reading showed a slowdown to 51.8 in December from 52.2 in November. The figures are consistent with moderate business activity growth.
- Investors, however, are likely to be attentive to the release of the US Nonfarm Payrolls report, due at the end of next week, and the name of the person who will replace Chairman Jerome Pôwell at the Federal Reserve, which is expected to be disclosed in the coming weeks.
Technical Analysis: EUR/USD approaches support at the 1.1700 area
The EUR/USD’s immediate trend remains bearish, after breaching the trendline support from mid-November lows. The 4-hour Relative Strength Index (RSI) has been rejected at the key 50 level, and the Moving Average Convergence Divergence (MACD) has turned lower after failing to cross the signal line, which highlights the growing bearish momentum.
Bears, however, need to break support at the December 17 and 19 lows, near 1.1700, to confirm the trend shift. In such a scenario, the focus would shift towards the December 4 high and December 11 low, around 1.1680, and the December 8 and 9 lows near 1.1615.
Upside attempts have been capped at 1.1764 earlier on the day. Further up, the reverse trendline, at 1.1785, and the December 16 and 24 highs above 1.1800 are likely to pose significant resistance.
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
