Over the past week the euro oscillated between weakness and a rally toward the 1.19–1.20 zone. Strong U.S. labor prints initially supported the dollar, but subsequent dollar softness and positioning pushed EUR/USD higher. Weak Eurozone manufacturing and ECB officials’ warnings about a strong euro keep downside risks for exporters and inflation. Traders should watch 1.20 resistance, near-term support around 1.17–1.18, upcoming U.S. labor data and ECB commentary.

The euro climbed toward $1.20 following the ECB's decision to keep interest rates unchanged and fresh data showing headline inflation falling to 1.7%. Policy warnings, internal hedging flows and political concerns over competitiveness are shaping near-term FX dynamics.

Euro weakened after euro‑area inflation dropped to 1.7% and core inflation eased to 2.2%, shifting ECB rate expectations and leaving EUR/USD under pressure amid a US rate advantage. Q4 GDP surprised modestly at 0.3%, but did little to reverse FX moves. Traders should watch ECB guidance, upcoming Eurostat releases and US data; key technical levels sit near 1.16–1.17 (support) and 1.18 (resistance).

EUR/USD pushed past $1.20 late January as the EU–India trade agreement and a softer US dollar combined to lift the euro. Bullish options positioning and clear technical breakouts signal further upside, while traders watch ECB/Fed cues and short-term support near 1.1720–1.1760.

EUR/USD traded higher last week after headlines about a Justice Department subpoena to the Federal Reserve and renewed U.S. tariff threats dented dollar support. The pair moved in a tight 1.1577–1.1741 range, finishing around 1.1678 amid mixed Eurozone data and shifting risk sentiment.

This article examines last week’s concrete drivers behind EUR strength: a U.S. dollar slump tied to a DOJ probe into Fed Chair Powell, steady ECB policy comments from Alvaro Santos Pereira, and the European Parliament’s endorsement of potential ECB vice presidents. It explains how each event moved EUR exchange rates and outlines practical trading implications.