EUR/USD Jumps Above 1.1750 Before ECB Rate Decision
The EUR/USD pair has moved above the 1.1750 level, showing strong momentum ahead of the European Central Bank (ECB) interest rate announcement. This rally is mainly supported by hopes of a new trade deal between the US and the European Union. Traders believe that the US might reduce or adjust the planned 30% tariffs on EU products, possibly lowering them to 15% with some exemptions. This news is weakening the US dollar and strengthening the euro.
All eyes are now on the ECB meeting. Most forex analysts expect the central bank to keep interest rates steady at 2.0%. If confirmed, this would be the first time in over a year that the ECB has paused its rate hikes. ECB President Christine Lagarde is also expected to speak about the impact of global trade tensions and inflation risks. Her comments may give hints about future monetary policy.
At the same time, several important US economic reports are expected today, including data on jobless claims, home sales, and manufacturing activity. These figures could cause short-term price swings in the forex market.
Impact:
If the ECB stays cautious and the trade talks continue positively, EUR/USD could possibly rise further. Market reaction might also depend on US data and Lagarde’s statement.