EURUSD: SELL 1.1350, SL 1.1450, TP 1.1130 | 21 April 2025

EURUSD:

EUR/USD is attracting buyers near 1.1370 in the early Asian session on Friday.

On Thursday, the European Central Bank (ECB) cut interest rates for the third time this year, bringing its main interest rate to 2.25 per cent in response to US President Donald Trump's slowdown and tariffs. ECB President Christine Lagarde told a news conference that US tariffs on EU goods, which have risen from an average of 3 per cent to 13 per cent, were already hurting the prospects for the European economy.

Analysts believe that the likelihood of a further rate cut in June is still high and that only a significant easing of trade tensions will convince the ECB to pause.

On the other side of the pond, Federal Reserve (Fed) Chairman Jerome Powell took a different stance, saying that a weak economy and high inflation could run counter to the Fed's goals and make a stagflationary scenario possible. His comments reduced the likelihood of a Fed rate cut in June, which boosted the US Dollar (USD) against the Euro. Money market traders have priced in almost 86 bps of a Fed rate cut before the end of 2025.

Trade recommendation: SELL 1.1350, SL 1.1450, TP 1.1130

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