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EURUSD:
The EUR/USD pair lost ground for the second consecutive day, trading near the 1.0900 mark during Asian hours on Thursday. However, the pair strengthened as the US dollar (USD) remained under pressure, weighed down by lower yields after the Federal Reserve (Fed) reiterated its forecast for two rate cuts this year. However, uncertainty surrounding US President Donald Trump’s tariff policy added to caution.
Meanwhile, U.S. Treasuries gained ground following the Fed’s decision to slow the pace of quantitative tightening, citing concerns over reduced liquidity and potential risks from sovereign debt limits.
On Wednesday, as expected, the U.S. Federal Reserve left the federal funds rate unchanged at 4.25% to 4.5% at its March meeting. Fed Chairman Jerome Powell said, “Labor market conditions are stable, and inflation has moved closer to our longer-term goal of 2%, although it remains somewhat elevated.”
In Europe, German leaders on Tuesday approved a debt restructuring plan proposed by likely Chancellor Friedrich Merz. The plan aims to boost economic growth and increase defense spending. Market participants expect that a shift away from Germany’s long-standing fiscal conservatism could lead to higher inflation and economic expansion, prompting the European Central Bank (ECB) to review its current monetary policy.
Trading recommendation: SELL 1.0900, SL 1.0940, TP 1.0800
Origin: FreshForex
