Weak German data leads to EUR/USD decline, holding steady around 1.1595 during European opening.
by VT Markets
/
Aug 12, 2025
The Euro is currently trading just above the 1.1600 support level after falling from 1.1700 in recent days. Recent German economic sentiment data shows a weak outlook for the Eurozone’s largest economy. All eyes are now on the upcoming US Consumer Price Index (CPI) report, which is expected to show rising price pressures.
EUR/USD has stabilized during the European session, but bearish momentum is strong due to a disappointing ZEW Economic Sentiment Index report. Comments about US inflation and the meeting between Trump and Putin regarding the conflict in Ukraine are also shaping market sentiment.
German ZEW Institute Update
The German ZEW institute has confirmed a weaker economic outlook, affecting key sectors like chemicals, pharmaceuticals, mechanical engineering, and metals. Meanwhile, a potential peace deal between Putin and Trump could influence market expectations, although past proposals have been turned down by Ukraine.
The upcoming US CPI data is expected to show an increase to a 2.8% annual rate. This will be closely watched for its impact on future monetary policy. The response of the US Dollar to this data, along with ongoing trade negotiations between the US and China, is influencing market activity.
EUR/USD has found support near 1.1595, with immediate resistance at 1.1630. Technical indicators suggest a bearish trend, and if the price cannot rise above 1.1630, further declines are likely. Potential targets for the pair include the lows of August 5 and July 31, which are 1.1530 and 1.1460, respectively.
Forex Market Trends
As economic and geopolitical events unfold, traders and investors are keeping a close watch on the markets for any major changes. The combination of economic indicators and geopolitical tensions continues to add complexity to market predictions.
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by VT Markets
Aug 12, 2025
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