EURUSD: SELL 1.0460, SL 1.0535, TP 1.0370 | 18 February 2025
18 February 2025, EUR/USD
An event to watch out for today:
12:00 EET. EUR - ZEW Business Sentiment Index
EURUSD:
The EUR/USD pair continues to lose ground for the second consecutive session, trading near 1.0460 during Asian hours on Tuesday. This decline can be attributed to the strengthening of the US dollar (USD) amid rising Treasury yields.
Federal Reserve Governor Michelle Bowman said on Monday that rising asset prices could slow down the Fed's recent progress on inflation. While Bowman expects inflation to fall, she warned that upside risks remain and emphasized the need for more certainty before considering a rate cut.
Meanwhile, Fed Chairman Christopher Waller acknowledged late Monday that while inflation has improved, progress has been “painfully” slow. Waller emphasized that the Fed should not let policy uncertainty get in the way of data-driven decision-making.
The euro is under downward pressure as several European Central Bank (ECB) officials remain confident that three more rate cuts are possible this year after cutting rates by 25 basis points to 2.75% last month.
However, the euro could be supported if a ceasefire is reached in Ukraine and gas supplies resume. JP Morgan said in a note that EUR/USD could strengthen by 5% under such circumstances.
US President Donald Trump and Russian President Vladimir Putin have reportedly agreed to begin talks on ending the conflict. Officials from the Trump administration are due to meet with their Russian counterparts in Saudi Arabia on Tuesday to discuss a potential peace deal.
Trading recommendation: SELL 1.0460, SL 1.0535, TP 1.0370
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The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
