EUR/USD stays above 1.1600 despite weekly decline and lowered expectations for Fed rate cuts

    by VT Markets
    /
    Nov 15, 2025

    US Dollar and Federal Reserve Insights

    The US Dollar Index (DXY) increased by 0.08%, reaching 99.31. Officials are currently debating whether to focus on indicators that look ahead or those that reflect past performance, hoping to avoid any policy mistakes. The EUR/USD is facing resistance at the 50-day Simple Moving Average of 1.1659. If it falls below 1.1600, there might be support at 1.1583 and 1.1500. The Euro, used by 20 countries in the EU, is widely traded around the world. The European Central Bank (ECB) influences its value through policy decisions. Interest rates play a significant role, and they are affected by factors like GDP, inflation, and trade balance—the stronger the economy, the more it benefits the Euro.

    Managing Volatility with Options

    With this uncertainty, it’s wise to consider options strategies to manage risk. If you think the price will rise above the 50-day moving average at 1.1659, buying call options or creating bull call spreads can help you benefit from potential gains toward 1.1700. This strategy allows you to profit from a rise while controlling your maximum risk. On the other hand, we must also prepare for a possible decline if the Fed takes a hawkish stance. If the price drops below 1.1600, we could quickly see it slide to 1.1500. In this case, buying put options or using bear put spreads can provide protection against losses or a way to profit from the downturn. Create your live VT Markets account and start trading now.

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