At the European Central Bank (ECB) meeting yesterday, the interest rate was kept at 2.15%, just as most people expected. The official statement did not include any big news. However, the market reacted by selling the euro because many think the ECB might cut rates at the next meeting in September.
Later, ECB President Lagarde said that recent economic data shows slow but steady growth. This made people buy the euro for a short time, but the price quickly went down again. So, the overall effect of the meeting was small.
In the end, the ECB’s next actions will likely depend on how global tariff talks go. Because the Japan–U.S. talks ended well, there is hope for progress.
Meanwhile, President Trump and other U.S. officials are putting more pressure on the U.S. central bank to lower interest rates. This is helping to keep the euro from falling too much.
Expected EUR/USD range: 1.1710 – 1.1830 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.