EURUSD: SELL 1.1070, SL 1.1170, TP 1.0870 | 14 May 2025

Event to pay attention to today:

15:30 EET. USD - Consumer Price Index

EURUSD:

EUR/USD opened with a bullish gap on Tuesday in the Asian session, trading near the 1.1110 level after losing more than 2.5% in the previous session.

Under the agreement, the US will cut tariffs on Chinese goods from 145% to 30% and China will cut tariffs from 125% to 10%. This development was welcomed by markets as a step towards stabilising global trade relations.

Attention now shifts to the upcoming Consumer Price Index (CPI) report for April, due for release on Tuesday. Economists expect core inflation to rise to 0.3 per cent month-on-month from -0.1 per cent previously, while core CPI is also expected to rise to 0.3 per cent from 0.1 per cent. On a year-on-year basis, both indicators are forecast to remain unchanged.

Meanwhile, the Euro (EUR) remains under pressure amid growing expectations that the European Central Bank (ECB) may extend its monetary easing cycle in response to falling inflation.

However, ECB executive board member Isabel Schnabel offered a more cautious view, speaking at Stanford University on Friday. She said current rates are appropriate and should remain in neutral territory.

Trade recommendation: SELL 1.1070, SL 1.1170, TP 1.0870

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