Euro Holds Near $1.12 as Dollar Weakens

The move matters economically because a firmer euro can ease imported inflation across the bloc and improve purchasing power for euro-area consumers, while a softer dollar can support global risk appetite and commodity prices. In Albania, the euro’s exchange rate is especially relevant for households, importers and borrowers with euro-denominated exposure, with the buy-sell range at 90.6 lekë to 91.4 lekë suggesting a broadly steady local market rather than a sharp revaluation.

On the charts, the EUR/USD pair has recovered from an October low near $1.12, with the relative strength index climbing back to 58 from near 5 earlier in the month, a sign of improving buying interest. The MACD remains slightly negative, however, underscoring that the euro has yet to break decisively into a stronger trend.

The dollar’s recent pullback has helped. The UUP dollar ETF is still trading near $28.88, but it has eased from an October peak above $29, while Adalytica’s dollar trade signals show sentiment at 17, or “Fear,” with the euro scoring 100 for “Extreme Greed.” That divergence points to a market that is leaning against the dollar, but not yet fully convinced the euro can turn that into a sustained rally.

The next catalyst is likely to come from U.S. economic data and policy expectations, which will determine whether the dollar resumes its advance or gives the euro room to push higher. For now, the single currency is firming, but not enough to declare a clean breakout.