EURUSD: BUY 1.1350, SL 1.1320, TP 1.1440 | 28 Abril 2025

EURUSD:

EUR/USD is declining to 1.1380 in the early Asian session on Friday. However, the decline in the major pair may be limited as investors remain concerned about trade tensions between the US and China. Later on Friday, the final reading of the Michigan consumer sentiment index will be released.

Late Thursday, US President Donald Trump said his administration was in talks with China on trade. Meanwhile, China said no talks on the economy and trade had taken place and called on the US to lift all unilateral tariff measures if it really wanted to resolve the issue. Continued concerns over Trump's potential tariff threats and ongoing trade tensions are likely to weigh on the US Dollar and act as a tailwind for EUR/USD in the near term.

‘There seems to be a chasm as wide as the Pacific Ocean between the US and China's views on trade,’ said Matt Weller, head of market research at StoneX. ‘And I think as long as that gulf persists, the dollar's rally may be short-lived.’

Across the ocean, traders are raising bets that the European Central Bank (ECB) will cut interest rates at its June meeting due to ‘meek’ remarks from ECB policymakers. This, in turn, is undermining the local currency against the US dollar.

ECB policymaker and Finland's central bank governor Olli Rehn said on Thursday that the central bank should not rule out ‘more significant interest rate cuts’.

Trading recommendation: BUY 1.1350, SL 1.1320, TP 1.1440

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