Euro Weakens; Lagarde Exit Report

The EUR/USD pair closed virtually unchanged on Tuesday but remains on the backfoot early Wednesday. Technical analysis indicates a short-term bearish bias, with the 20-period Simple Moving Average (SMA) sliding beneath the 50 and 100 SMAs.

This week, the Euro was weakest against the Australian Dollar. The US Dollar benefited from a risk-averse market atmosphere on Tuesday, though it later struggled to maintain strength as Wall Street stabilized.

Federal Reserve Bank of Chicago President Austan Goolsbee stated that several rate cuts are possible in 2026 if inflation progress resumes. Danske Bank analysts expect a limited impact from a new ECB president, noting that EU leaders historically balance doves and hawks on the ECB's executive board.

Upcoming US economic data includes Durable Goods Orders for December and Industrial Production for January, along with the minutes from the January Fed policy meeting. Markets price in a 92% probability of a Fed policy hold in March, suggesting a muted reaction to the minutes.