EUR/USD bounces back to approximately 1.1350 after Trump’s tariff threats unsettle markets
by VT Markets
/
May 24, 2025
US Economic Data and Eurozone Updates
US economic data showed mixed results. Housing Starts fell, but New Home Sales rose in April. In the Eurozone, Germany’s GDP improved year-on-year, yet it still showed contraction. Meanwhile, speculation about a possible ECB rate cut did not impact the Euro negatively.
The Euro gained from the weakness of the US Dollar, with the US Dollar Index dropping by 0.79%, reaching its lowest since April 29. The trend of selling the Dollar continued, further fueled by Trump’s trade war announcement and Moody’s downgrade of US government debt.
The EUR/USD pair started to rise again, reaching 1.1375 as it neared key resistance levels at 1.1450 and 1.1500. However, if it dips below 1.1300, it may revisit recent lows, influenced by future ECB interest rate decisions.
Current EUR/USD Resistance Levels
At present, EUR/USD is eyeing resistance levels around 1.1450 to 1.1500. Breaking through this range would confirm strength and likely lead to more momentum-driven trading. However, if the pair doesn’t stay above 1.1300, it may head back to recent lows. What happens next largely depends on decisions from central banks—especially the ECB—and whether traders will keep shorting the Dollar while managing potential risk elsewhere.
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by VT Markets
May 24, 2025
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