EURUSD: SELL 1.0470, SL 1.0520, TP 1.0400 | 28 Febrero 2025

Event to watch out for today:

15:30 EET. USD - Core PCE Price Index

EURUSD:

EUR/USD is losing ground to the 1.0470 level during Asian trading on Thursday. The euro (EUR) is weakening after US President Donald Trump threatened to impose 25 percent tariffs on the European Union. Investors await the release of the U.S. fourth-quarter (Q4) gross domestic product (GDP) estimate and weekly initial jobless claims due later on Thursday for fresh momentum.

Late Wednesday, U.S. President Donald Trump reiterated his intention to impose 25 percent tariffs on Canada and Mexico, and added the European Union (EU) to the list of countries for whose imports he would penalize U.S. consumers. The EU has vowed to respond “firmly and immediately” to “unjustified” trade barriers, indicating that it is prepared to retaliate quickly if new duties are imposed. Trump's tariff threats could worsen the Eurozone's economic slowdown and cause the common currency to depreciate against the U.S. dollar (USD).

Across the ocean, concerns about US economic growth have heightened expectations that the US Federal Reserve (Fed) will make at least two rate cuts this year, undermining the USD. According to CME's FedWatch tool, markets are now pricing in a 2025 rate easing of around 58 basis points (bps), although rates are expected to remain flat over the next few months.

Trading recommendation: SELL 1.0470, SL 1.0520, TP 1.0400

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