EURUSD: BUY 1.1350, SL 1.1310, TP 1.1430 | 02 Junio 2025

An event to watch out for today:

15:30 EET. USD -Core PCE Price Index

EURUSD:

The EUR/USD pair is struggling to capitalize on yesterday's strong rebound from 1.1200, or a one-and-a-half-week low, and is trading with a slight negative bias during Friday's Asian session. Spot prices are currently hovering around 1.1300, down nearly 0.15% on the day, although the downtrend remains subdued.

After a sharp reversal the day before, the US dollar (USD) is attracting some buyers on the decline amid a flight to safe assets and is proving to be a key factor holding back the EUR/USD pair. The Federal Appeals Court suspended a separate trade court ruling and late Thursday evening reinstated US President Donald Trump's broad trade tariffs. This adds uncertainty to the markets and revives demand for traditional safe-haven assets.

However, the USD's rise does not inspire confidence in a bullish trend amid concerns about the deterioration of the US financial situation and expectations that the Federal Reserve (Fed) will again lower borrowing costs in 2025. On the other hand, the single currency continues to receive some support from US President Donald Trump's decision to postpone the introduction of tariffs on the European Union (EU), which helps to limit the decline of the EUR/USD pair.

Going forward, attention will be focused on the release of the US Personal Consumption Expenditures (PCE) price index. This important data will play a key role in shaping expectations regarding the Fed's rate cut policy, which in turn will stimulate demand for the US dollar and give some momentum to the EUR/USD pair ahead of the weekend. Then, the market's attention will shift to the important European Central Bank (ECB) monetary policy meeting next Thursday.

Trading recommendation: BUY 1.1350, SL 1.1310, TP 1.1430

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