Euro strengthened its position amid the uncertainty in the United States

Last week, the US currency completed its «bullish rally», which coincided with the inauguration of the new US President Donald Trump. The EUR/USD pair, after falling to its lowest levels since November 2022, was able to find stable support near the key level of 1.0200.

The strengthening of the euro's position was due to a number of significant factors. First of all, the uncertainty of the United States on the issue of new tariffs on imports of goods from the European Union has created more favorable conditions for business in the eurozone. 

Additionally, data on the Manufacturing PMI business activity index in the manufacturing sector supported corrective growth. In January, the indicator exceeded expectations, rising from 45.1 to 46.1 points, which was higher than the predicted 45.3.

In the near future, the attention of market participants will be focused on the meetings of the US Federal Reserve and the European Central Bank, the results of which will be announced on January 29 and 30, respectively.