EURUSD: BUY 1.0430, SL 1.0380, TP 1.0510 | 04 March 2025

EURUSD:

The pair's recovery was driven by the weakening of the US Dollar (USD) after the release of Personal Consumption Expenditure (PCE) inflation data on Friday.

The US PCE inflation report met expectations: the monthly core PCE remained at 0.3%. Core PCE rose slightly to 0.3% from December's 0.2%, and annualised core PCE came in at 2.6%, slightly above forecasts but unchanged from December's reading. The core PCE fell to 2.6% from a revised 2.9% in December.

Meanwhile, escalating trade tensions between the US and China could support safe-haven flows into the US dollar, which could limit EUR/USD gains. Over the weekend, US President Donald Trump announced additional 10 per cent tariffs on Chinese imports from Tuesday, adding to the initial 10 per cent tariffs imposed last month. On Thursday, Trump also said on Truth Social that 25 per cent tariffs on Canadian and Mexican goods would take effect on March 4.

The Euro (EUR) is strengthening against its peers following the release of stronger than expected Harmonised Index of Consumer Prices (HICP) data in Germany for February on Friday. Investors now await Eurozone HICP inflation data to be released later in the day.

Trade recommendation: BUY 1.0430, SL 1.0380, TP 1.0510

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