Euro Edges Higher as ECB Meeting Comes Into Focus

Euro Edges Higher as ECB Meeting Comes Into Focus

The Euro (EUR) is trading 0.3% higher against the US Dollar (USD) heading into Friday's North American session, positioning itself as a mid-performer among the G10 currencies. The market's attention is now squarely on next week's European Central Bank (ECB) meeting, which is expected to offer clearer guidance following a recent shift to a more neutral policy tone.

ECB Outlook Supports the Euro

"All eyes will be on the ECB next week," analysts note, "with traders watching for confirmation of a more neutral stance." The Eurozone bond yield spreads have stabilized in a Euro-supportive direction, with further gains anticipated after the pullback observed at the end of June.

Trade Policy Remains a Key Risk

Despite the recent Euro resilience, trade policy uncertainty continues to hover over markets. "There has been no meaningful progress in US-EU trade negotiations," experts say, warning that headlines related to tariffs and talks could remain a near-term risk into early August.

Technical Picture: Support Holds Above 1.1580

Technically, EUR/USD has shown strong support just above the 1.1580 level, with today’s rebound signaling potential for a short-term recovery. The 14-day Relative Strength Index (RSI) is neutral around 50, suggesting room for either consolidation or upside.

EUR/USD is also holding above the 50-day moving average, now at 1.1499, which adds a layer of trend support.

Support: 1.1580
Resistance: 1.1700
Range Outlook: Sideways to mildly bullish in the near term

Conclusion

The Euro's modest rise is grounded in both technical support and anticipation of ECB clarity. However, geopolitical and trade risks could still cloud near-term direction. Traders should brace for range-bound movement between 1.1580 and 1.1700 as next week's ECB policy decision takes center stage.