EURUSD: BUY 1.0500, SL 1.0470, TP 1.0580 | 25 Febrero 2025

An event to watch out for today:

12:00 EET. EUR - Consumer Price Index

EURUSD:

The Euro-dollar pair is attracting buyers towards 1.0500 at the start of the Asian session on Monday. The Euro is rising as the conservatives in Germany won the elections as expected. Traders are awaiting further German election results.

Exit polls showed that the opposition conservative Christian Democratic Union (CDU) and its ally Christian Social Union (CSU) won the most votes in Germany's federal election on Sunday. As a result, party leader Friedrich Merz became the next chancellor, while the far-right Alternative for Germany (AfD) came in second. All eyes are now on how soon the conservative Christian Democrats can form a coalition government to offer much-needed reforms to the struggling economy.

According to ZDF exit polls, the conservative CDU/CSU bloc won 28.5% of the vote, followed by the far-right Alternative for Germany (AfD) with 20% and Scholz's Social Democratic Party with 16.5%.

Weak economic data from the U.S. is dragging the dollar lower. Data released by S&P Global on Friday showed that business activity in the US fell to a 17-month low in February. According to the latest data, the S&P Global Composite PMI for U.S. business activity fell to 50.4 in February from 52.7 in January. Meanwhile, the manufacturing PMI rose to 51.6 from 51.2 in the same reporting period. The Services PMI fell to 49.7 in February from 52.9 in January, indicating a loss of momentum in the services sector.

Trading recommendation: BUY 1.0500, SL 1.0470, TP 1.0580

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