EUR/USD holds steady around 1.1770 in the early Asian session on Friday. The uncertainty surrounding the leadership of the ECB could put strain on the Euro. Market participants will closely monitor the upcoming flash US Q4 GDP and PCE inflation reports, set to be released later on Friday. The EUR/USD pair is showing a consistent performance around 1.1770 in the early Asian session on Friday. The potential upside for the Euro seems limited as speculation about the leadership of the European Central Bank grows stronger.
It is reported that ECB President Christine Lagarde was expected to leave her role before the end of her eight-year term. Experts suggested that an early departure would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find a successor before the April 2027 French presidential election.
Meanwhile, strong US labor market data and aggressive FOMC Minutes bolster the Greenback, creating a challenge for the major pair. Several Federal Reserve officials indicated that if inflation continues to persist above the 2% target, rate hikes may be considered, as noted in the recent FOMC Minutes. Policymakers suggested a balanced representation of upcoming policy to address this risk.
Market participants are closely watching the upcoming release of important US economic indicators on Friday, which will include the preliminary Gross Domestic Product figures for the fourth quarter alongside the Personal Consumption Expenditures report. If results do not meet expectations, this could result in a decrease in the value of the US Dollar compared to the shared currency. On the Euro front, the preliminary readings of the Purchasing Managers’ Index from the Eurozone and Germany are about to be unveiled.