- EUR/USD decreases to nearly 1,1300, when the American dollar has made up despite the uncertainty about the US economic perspectives.
- The Fed Fed Waller supports interest rate reduction due to the escalation of the risk of recession in the USA.
- ECB is expected to reduce interest rates by 25 BPS on Thursday.
EUR/USD moves to almost 1,1300, when the US dollar (USD) gains a short-lived pillow on Tuesday at a North American trade hour. . American dollar index (DXY), which follows the Greenback value compared to the six main currencies, collections to almost 100.00 after finding the land close to the three -year nearest nearest 99.00, published on Friday.
However, investors expect an American dollar to remain sluggish because the currency loses its safe and sound status due to the constantly changing tariff headers by United States (USA) President Donald Trump from last week.
After announcing a 90-day break in the implementation of mutual tariffs for all his trading partners, with the exception of China, the US President Trump plans to announce a short-lived suspension of car fees. This would buy time to domestic producers to establish production plants at home.
In addition, increased fears of economic slowdown due to Trump’s economic policy also increased to the American dollar and strengthened the profitability of the US treasury. Historically, the profitability of interest with interest increases rapidly when financial market participants add risk bonus in times of economic uncertainty. The 10-year profitability of the US treasury increased by more than 13% during the last six trade sessions.
It is expected that the growing profitability of bonds and escalated fears of economic slowdown will threaten the perspectives of the monetary policy of the Federal Reserve (FED). On Monday, Fed Governor Christopher Waller warned that “New Tariff Policy” is one of the “biggest shocks” that has influenced the US economy for decades. Waller brought more importance to brewing fears of economic recession in connection with the acceleration of inflation expectations and supported the relief of monetary policy. He expected that “the effects of tariffs in inflation ‘will be” compact -lived “.
The price of the American dollar today
The table below shows a percentage change in the US dollar (USD) compared to the main vital currencies. The American dollar was the strongest in relation to the Swiss franc.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.58% | -0.19% | 0.11% | 0.09% | -0.72% | -0.76% | 0.60% | |
| EUR | -0.58% | -0.76% | -0.44% | -0.44% | -1.22% | -1.32% | 0.03% | |
| GBP | 0.19% | 0.76% | 0.30% | 0.29% | -0.46% | -0.57% | 0.79% | |
| JPy | -0.11% | 0.44% | -0.30% | -0.05% | -0.83% | -1.03% | 0.45% | |
| BOOR | -0.09% | 0.44% | -0.29% | 0.05% | -0.77% | -0.85% | 0.50% | |
| Aud | 0.72% | 1.22% | 0.46% | 0.83% | 0.77% | -0.11% | 1.29% | |
| NZD | 0.76% | 1.32% | 0.57% | 1.03% | 0.85% | 0.11% | 1.37% | |
| CHF | -0.60% | -0.03% | -0.79% | -0.45% | -0.50% | -1.29% | -1.37% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose an American dollar on the left column and move along the horizontal line to Japanese Jen, the percentage shift displayed in the field will represent USD (base)/JPy (quote).
Daily Digest Market Movers: EUR/USD Slumps before ECB monetary policy
- The repair movement in Parie EUR/USD is also driven by a cautious trend in euro (EUR) before the decision of the monetary policy of the European Central Bank (EBC), which will be announced on Thursday. EBC will almost certainly reduce the deposit deposit sludge rate by 25 base points (BPS) to 2.25%. It would be the sixth reduction in the interest rate by the ECB in a row.
- Investors will pay special attention to the press conference of President ECB Christine Lagarde to get tips on the likely perspective of monetary policy for the remaining year and the way the modern trade policy of the US President Trump will shape Euro zone economy.
- Plenty EBC Officials commented that the inflation of Trump’s tariffs would not last and will lead to considerable economic risk. The augment in inflation driven by Trump would be compensated by China who drops their products into the euro area. The escalating trade war between the USA and China would force the latter to look for other economies to sell their goods. The tariff war between the USA and China escalated after the Asian giant took revenge on Trump’s mutual tariffs by increasing the duties related to importing from America.
- The global front is expected that trade relations between the USA and the euro area will become fit. The National Economic Council of the USA (NEC) Kevin Hassett said in an interview with Fox Business Network on Monday that he was “huge progress” in tariff conversations from the European Union (EU).
- Meanwhile, euro and German research – economic moods in April became much destitute. Data on the sentiment of the euro area moves to -18.5 from estimates +14.2 and earlier edition 39.8. German EXPLEMENTS study – economic moods occurred on -14 in April from 51.6 in March, noticing market estimates of 9.3 to a wide margin. The sentiment of institutional investors has been significantly denied by increasing global trade tensions. Analysts in Barclay provide for economic recession euro The area in the second half of 2025, despite the partial 90-day break for the Mutual Tariffs of the US President Trump. Washington announced 20% of mutual fees for importing from the EU.
Technical analysis: EUR/USD drops to almost 1,1300
EUR/USD falls to almost 1,1300 during Tuesday’s session in North America. However, the overall perspective of the main currency pair is strongly stubborn, because all compact and long interpretation medium movable (EMA) inclination.
The 14-day relative strength (RSI) indicator jumps above 70.00, which indicates a mighty stubborn momentum.
Looking up, the psychological resistance 1.1500 will be the main resistance to the couple. And vice versa, the lowest level of April 11 1.1192 will be a key support for Euro Bulls.
