Yesterday, U.S. economic reports (ADP jobs data and ISM non-manufacturing index) showed the economy is weaker than expected. This caused the U.S. dollar to fall, and the euro rose to 1.1434. President Trump also pushed the Federal Reserve to cut interest rates, making people expect a rate cut at the June meeting.
In addition, U.S. Trade Representative Lighthizer said talks with the EU were “very constructive” and “moving quickly,” which gave investors more confidence to buy euros.
Today, the European Central Bank (ECB) is expected to cut interest rates by 0.25%, but this is already expected by the market. Even if the ECB hints at more cuts in the future, the effect may be small because trade talks are going well. As the dollar continues to weaken, the euro is likely to stay strong.
Expected Euro–Dollar Price Range: 1.1360 – 1.1470
Note: This information does not guarantee profits. Please make your own decisions when trading.