President Trump said he will announce the next Federal Reserve (FRB) chair earlier than expected. Because of this, people started selling the US dollar.
There are two reasons: people expect a possible interest rate cut soon, and they are worried that the central bank is losing independence. This caused the dollar to fall against many other currencies.
The euro went up to 1.1744, the highest since September 2021, and broke above the strong resistance around 1.16. This shows that people are buying the euro again as another choice instead of the dollar.
At the same time, trade talks about tariffs, which have been difficult, now seem to be moving forward. If these talks go well, people may buy even more euros.
However, worries about the Middle East are not gone yet. Also, the US will announce PCE deflator data today. If this data is strong, it could make people buy the dollar again and sell the euro, so we need to be careful.
EUR/USD Forecast Range: 1.1640 – 1.1740
Note: This information does not guarantee profit. Please make your own decisions when trading.