At yesterday’s European Central Bank (ECB) meeting, the interest rate was cut by 0.25% to 2.15%, as expected. The official statement repeated that if trade tensions grow, economic growth and inflation may fall below expectations.
However, the euro quickly rose to 1.1495 after ECB President Lagarde said that this rate cut brings the easing cycle close to an end. Later, news of a phone call between U.S. President Trump and Chinese President Xi led to stronger demand for the dollar, pushing the euro back down to around 1.1430.
With worries about U.S.-China trade tensions easing, the market feels more stable. Today, the U.S. jobs report will be released. The euro is getting close to its highest level this year (1.1573, reached in April), and it may try to rise again. But with upcoming tariff talks, it may be hard to go higher, and if it fails, the euro could fall sharply.
EUR/USD Expected Range: 1.1380 – 1.1550 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.