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European Currencies Decline Ahead of Key Data from Europe and the US

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European Currencies Decline Ahead of Key Data from Europe and the US

EUR/USD and GBP/USD extended their decline, revisiting recent extremes after last week’s corrective rebound. The recovery attempt was largely technical in nature and did not alter the broader structure of the move. Additional pressure on European currencies came from dollar strength following Wednesday’s release of the Federal Open Market Committee minutes, which signalled a cautious stance and offered no indication of imminent policy easing. This reinforced support for the US currency and triggered a fresh downward impulse in both EUR/USD and GBP/USD.

At present, the market’s focus has shifted to upcoming macroeconomic data from both Europe and the United States. These releases are likely to determine whether the current downward trend gathers further momentum or whether the pairs begin to establish medium-term support levels.

Overall, the euro and sterling remain under pressure after the recent correction faded and the dollar strengthened on the back of the minutes. Further direction will depend on incoming data: either the bearish trend will be confirmed, or the market will begin searching for more sustainable levels of stabilisation.

EUR/USD

As anticipated, EUR/USD buyers failed to overcome resistance in the 1.1900–1.1930 range. The unsuccessful test of this area last week reinforced the downward impulse and led to fresh moves towards recent lows near 1.1800. Technical analysis suggests a potential test of support in the 1.1650–1.1720 zone. The bearish scenario would be invalidated by a firm break and consolidation above 1.1800.

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Key events for EUR/USD:

  • Today at 10:30 (GMT+2): Germany’s Manufacturing PMI;
  • Today at 15:30 (GMT+2): US Gross Domestic Product;
  • Today at 15:30 (GMT+2): US Core PCE Price Index.

GBP/USD

A rejection from the key 1.3700 resistance level intensified downward pressure on GBP/USD. Sellers pushed the pair to fresh recent lows near 1.3500. Should UK data disappoint, a further decline towards 1.3320–1.3360 cannot be ruled out. A weakening of the bearish pressure would require either a decisive move back above 1.3500 or the formation of a reversal pattern on higher time frames.

Key events for GBP/USD:

  • Today at 09:00 (GMT+2): UK Core Retail Sales Index;
  • Today at 11:30 (GMT+2): UK Composite PMI;
  • Today at 16:45 (GMT+2): Speech by FOMC member Bostic.

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Crypto World

Ethereum Foundation Less Than 500 ETH Away From Hitting 70K Staked ETH Goal

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Ethereum, Staking

The Ethereum Foundation (EF), the non-profit organization that steers development of the Ethereum ecosystem, staked over 45,000 Ether (ETH) on Friday, bringing the total amount staked to about 69,500 ETH, less than 500 coins shy of the Foundation’s 70,000 goal.

The EF staked the coins in a series of transactions, each consisting of 2,047 ETH, with the total amount staked on Friday valued at over $92.2 million, according to data from Arkham Intelligence.

Ethereum, Staking
A portion of the ETH transfers from the Ethereum Foundation’s treasury to the Ethereum Beacon Deposit Contract for staking. Source: Arkham Intelligence

The EF began staking ETH in February as part of its revamped treasury strategy policy announced in June 2025 and will use the yield generated to fund protocol research, development and ecosystem grants. The EF said in its updated treasury policy:

“We are now increasingly moving into staking and DeFi, both to enhance financial sustainability and to support a key application category that is delivering on the promise of permissionless, secure access to base civilizational infrastructure for millions of people today.” 

The foundation staked 2,016 ETH, valued at about $4.1 million in February, followed by 22,517 ETH, valued at about $46.1 million, in March. The EF has locked over $143 million in ETH in the Ethereum Beacon Deposit Contract, according to Arkham Intelligence. 

Ethereum, Staking
The Ethereum Foundation’s crypto holdings and counterparties. Source: Arkham Intelligence

The adoption of a yield-bearing treasury strategy followed pressure from the Ethereum community on the EF to generate income from its treasury to cover expenses, rather than continually selling tokens to fund operations.

Related: Ethereum Foundation sells $10.2M worth of ETH to BitMine in OTC deal

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Vitalik Buterin warns EF staking may force positions in hard forks

Validators, who lock up tokens to secure proof-of-stake (PoS) blockchain networks, can influence which chain is valid in the event of a network hardfork, or a partition of a network into two competing chains.

“If EF stakes, ourselves, this de facto forces us to take a position on any future contentious hard fork,” Ethereum co-founder Vitalik Buterin said in January 2025. 

The EF is exploring ways to mitigate the centralization risks posed by its staking activities in the event of a contentious hard fork, Buterin added. 

Magazine: Ethereum’s Fusaka fork explained for dummies: What the hell is PeerDAS?

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