EUR/USD continues to retreat, but short-term pressure begins to ease

The pace of EUR/USD’s recent decline has slowed somewhat, but it is still on track for a fifth consecutive day of losses, with price action continuing to test below the 1.0800 level. The Euro struggled to find its footing in the absence of meaningful EU economic data, leaving Fiber buyers to rely on geopolitical headlines and US data releases for market flows.

On Tuesday, the Conference Board (CB) reported that consumers' expectations for inflation over the next year rose to 6.2%, up from 5.8% in February. Consumer concerns are heightened about continued high prices for basic household items, especially eggs, and the potential inflationary impact of tariffs imposed during the Trump administration. In addition, the CB's consumer confidence survey showed that future economic expectations declined, falling to 65.2 in March, a 12-year low and significantly below the 80.0 level that usually indicates a possible recession.

Building on these concerns, Moody's ratings agency issued a strong warning early on Tuesday, highlighting the "deterioration" in the United States' fiscal strength, especially the growing challenges of servicing the U.S. debt. Moody's also predicted that the country could face a long-term decline in its fiscal strength, a statement that is likely to anger Donald Trump and his administration, which is currently advocating for Congress to significantly increase the debt ceiling.

In U.S. economic news, durable goods orders will be released during the New York trading session. Overall, these orders are expected to decline -1.0% in February after rebounding 3.2% in January.