EUR/USD Awaits German ZEW Survey Data The EUR/USD pair dipped slightly after recent gains, trading around 1.1560 during the Asian hours on Tuesday. The US Dollar gained strength due to optimism about ending the government shutdown. President Trump supports a bipartisan agreement, suggesting a reopening is near. Amid recent economic uncertainty in the US, expectations for a Federal Reserve rate cut have risen. Currently, markets see a 62% chance of a 25 basis points cut in December. Fed Governor Stephen Miran noted easing inflation and supported more rate cuts. The Euro may strengthen as it could benefit from the European Central Bank’s cautious policy. Traders are awaiting Germany’s ZEW Survey data. The ECB is likely to keep interest rates steady, thanks to steady economic performance and controlled inflation. The Euro is the currency used by 20 Eurozone countries and is traded heavily worldwide. The ECB oversees Eurozone monetary policy to maintain price stability, mainly through interest rate changes. The Euro’s value is influenced by economic indicators like inflation and GDP. A positive Trade Balance usually supports the Euro. The strength of the US Dollar, which was once linked to the end of a government shutdown years ago, is now shaped by different factors. As of November 11, 2025, focus remains on the large interest rate gap between the US and other countries. The Federal Reserve has kept its key rate at a 24-year high of 5.50% to counter ongoing inflation, which recent data reported at 3.4%. ECB and Federal Reserve Interest Rate Expectations On the other hand, the Euro is receiving support as the European Central Bank also takes a careful approach. The ECB is maintaining its main interest rate at 4.0%, with the latest Eurozone Harmonized Index of Consumer Prices (HICP) at 2.9%, well above the 2% target. We are closely watching for Germany’s ZEW survey data to assess the economic health of the region. For derivative traders, this difference in policy keeps the EUR/USD in a delicate position, currently near 1.0780. With both central banks signaling stable rates, we expect the pair to remain within a narrow range in the coming weeks. Selling options premium through strategies like iron condors could be a useful approach, potentially benefiting from lower volatility. The primary risk in this sideways market is unexpected economic reports, particularly US employment data. Last month’s Non-Farm Payrolls report indicated a cooling labor market, with only 150,000 jobs added. Another weak report could quickly revive bets for a Fed rate cut. Therefore, holding some long-dated EUR/USD call options might provide a cost-effective hedge against a sudden drop in the dollar. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now