EUR/USD faces pressure as China launches €4bn bond issuance

EUR/USD is experiencing downward pressure as China prepares to raise €4 billion through sovereign euro-denominated bonds across two maturities, potentially affecting euro liquidity dynamics. The issuance represents China's strategic move to diversify its offshore funding sources away from USD-denominated instruments, marking a significant development in international bond markets. While specific pricing details are pending, the large-scale euro bond offering could temporarily absorb euro liquidity from the market, creating selling pressure on the common currency. This development comes amid broader concerns about eurozone economic growth and the ECB's monetary policy trajectory. Technical indicators suggest EUR/USD may test support at 1.0800 if selling intensifies, with resistance at 1.0850. Traders should monitor the final pricing and subscription levels of China's bond issuance, as strong demand could mitigate negative euro impacts while highlighting growing international confidence in euro-denominated assets despite near-term pressure.