EUR/USD faces pressure as EU Commission prioritizes AI competitiveness

EUR/USD is trading near 1.0820, showing mild weakness as European Commission President von der Leyen unveiled ambitious AI and competitiveness initiatives. The announcement of AI gigafactory pilot projects signals the EU's push to compete with global tech leaders, requiring massive public and private investment. Von der Leyen emphasized translating Mario Draghi's competitiveness report into actionable policies, highlighting concerns about job losses to non-market economies. The three pillars - closing innovation gaps, joint decarbonization plans, and defense urgency for competitiveness - suggest significant capital allocation shifts ahead. While these long-term structural reforms could strengthen the eurozone economy, immediate market reaction reflects concerns about required investment outlays. Technical indicators show EUR/USD testing support at 1.0815, with resistance at 1.0845. Traders should monitor European equity flows and any ECB commentary on financing these initiatives.