EUR/USD: Inflation Data Doesn’t Dent Pair
- The EUR/USD pair is showing resilience above the 1.14 level,even as the dollar attempts a technical correction.
- China's manufacturing sector contracted in May,with the Caixin manufacturing PMI falling to 48.3, the lowest since September 2020.
- In the U.S., recent data indicated a decline in ISM manufacturing PMI for the third consecutive month.Looking ahead, reports on U.S.
EUR/USD defies the dollar’s attempted recovery, holding firm above 1.14, even as the market navigates trade tensions. Discover how the primary_keyword fares, while China’s weak manufacturing data puts pressure on the FTSE 100, impacting mining stocks. This analysis explores the technical landscape for both currency pairs, including potential targets and support levels.The secondary_keyword,FTSE 100,struggles to extend gains at 8800,highlighting the market’s current volatility. Stay informed about how U.S. data releases, specifically factory orders and job openings, may influence the trajectory of the EUR/USD and broader market sentiment. Get expert insights with News Directory 3, and uncover the next moves. Discover what’s next …
EUR/USD and FTSE 100 Analysis: Trade Tensions Impact Markets
Updated June 03,2025
The EUR/USD pair is showing resilience above the 1.14 level,even as the dollar attempts a technical correction. This comes amid ongoing concerns about the U.S.economy and President Trump’s trade policies. Meanwhile, the FTSE 100 faces headwinds, dragged down by mining stocks after disappointing manufacturing data from China.
China’s manufacturing sector contracted in May,with the Caixin manufacturing PMI falling to 48.3, the lowest since September 2020. This decline, attributed to escalating trade tensions, has raised concerns about the Chinese economy and negatively impacted metal prices, later affecting mining companies listed on the FTSE 100.
In the U.S., recent data indicated a decline in ISM manufacturing PMI for the third consecutive month.Looking ahead, reports on U.S. factory orders and JOLTS job openings will provide further insights into the health of the American economy. The euro has benefited from dollar weakness, despite expectations of further easing by the European Central Bank.
EUR/USD Technical Analysis
EUR/USD has rebounded from its May low, surpassing 1.14. The 50-day simple moving average (SMA) is guiding the price higher, with a potential target of 1.1450. A break above this level could pave the way for further gains toward 1.15 and new year-to-date highs.Conversely, a drop below 1.14 could lead to support levels at 1.1285,followed by last week’s low of 1.12 and the 50 SMA.
FTSE 100 technical Analysis
The FTSE 100’s recovery has encountered resistance at 8800. To extend gains toward 8910 and perhaps record highs, buyers need to overcome this hurdle. Immediate support lies at 8725, with further support at 8650.
What’s next
Traders are closely watching U.S. factory orders and JOLTS job openings for further signals on the U.S. economic outlook, which could influence broader market sentiment and the trajectory of both the EUR/USD and FTSE 100.