Last week, Germany held a vote for the new Prime Minister, and Mr. Merz, the CDU party leader, was narrowly chosen. Because of this, the euro went up to 1.1380.
Later, after the U.S. central bank meeting, they showed they are not in a hurry to lower interest rates. This made people buy the U.S. dollar, so the euro went down.
There was also news that the U.K. and U.S. might agree on a trade deal soon. This helped the British pound, and the euro was also bought for a short time, but it quickly went down again.
Then, the EU said it may add 95 billion euros in extra taxes (tariffs) if talks fail. This made it hard for the euro to go up.
If there is progress in talks about tariffs between the U.S. and Europe this week, the euro might rise for a short time.
However, because of the U.S.-U.K. agreement, people may continue to buy U.S. dollars, so the euro may keep falling.
This Week’s Euro-Dollar Forecast Range: 1.1050 – 1.1350
Please note: This is not a guarantee of profit. Please make your own decisions when trading.