EURUSD: BUY 1.1420, SL 1.1400, TP 1.1520 | 27 May 2025

Event to pay attention today:

17:30 EET. EUR- ECB President Christine Lagarde to deliver a speech

EURUSD:

EUR/USD continues to rise for the second consecutive session, trading near 1.1390 during Asian hours on Monday. The euro (EUR) is strengthening amid a Bloomberg report that US President Donald Trump has agreed to extend 50 per cent tariffs for the European Union (EU) until July 9. Sunday. European Commission President Ursula von der Leyen wrote on social media that the EU is ready to move quickly in trade talks with the United States (US) but needs more time to reach a deal. US markets will be closed on Monday due to the Memorial Day holiday.

On Friday, President Trump threatened to impose 50 per cent tariffs on imports from the European Union in a post on the Truth Social website, as Brussels sent Washington a less than ideal trade proposal. Trump stated, ‘Our discussions with them are going nowhere! Therefore, I am recommending direct 50 per cent tariffs on the European Union starting June 1, 2025.’

Additionally, EUR/USD is rising as the US Dollar continues to lose ground due to uncertainty surrounding the US economy. The US budget deficit could widen further when Trump's ‘one big beautiful bill’ passes through the Senate, raising the risk that bond yields will remain high for longer. Higher bond yields could lead to higher borrowing costs for consumers, businesses and governments.

US markets remain under pressure amid a deteriorating US debt profile as Moody's downgraded the US credit rating from Aaa to Aa1. According to Moody's forecasts, US federal debt will reach 134% of GDP by 2035, up from 98% in 2023, and the budget deficit will increase to nearly 9% of GDP.

Trading recommendation: BUY 1.1420, SL 1.1400, TP 1.1520

FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!