Currency Updates

EUR/USD Slips to 1.1350 as US Dollar Gains Momentum on Fed & Trade Optimism

April 23, 2025 – DailyForex.pk

The EUR/USD pair extended its downward slide on Wednesday, slipping 0.58% to 1.1355 during early Asian trading, as renewed US Dollar (USD) demand weighed on the Euro. The pair faces increased selling pressure amid hawkish Fed rhetoric, positive US trade developments, and rising expectations of an ECB rate cut in June.


💬 Trump Reaffirms Powell’s Position, Boosting Dollar Confidence

US President Donald Trump made headlines after stating he has “no intention of firing” Fed Chair Jerome Powell, despite his ongoing frustration over high interest rates. The reassurance around Powell’s position helped stabilize market sentiment and strengthened the dollar, as investors viewed the Fed’s independence as intact.

Meanwhile, Trump’s economic team is actively pursuing trade negotiations, with 18 countries presenting offers and meetings underway with 34 global partners. The White House emphasized progress on lowering tariffs—lifting investor confidence and fueling USD upside.


📈 Hawkish Fed Tone Adds to Greenback Strength

Adding to the bullish tone, Fed Governor Adriana Kugler commented that recent import tariffs will likely push prices higher, suggesting that the central bank should hold rates steady until inflation risks ease. This hawkish stance supported further buying interest in the dollar, pushing the EUR/USD pair lower.


📉 Euro Weighed Down by ECB Rate Cut Bets

On the European side, ECB rate cut expectations continue to climb. According to LSEG data, traders now price in a 75% chance of a rate cut at the June meeting—up from 60% before the latest ECB policy decision. The rising odds are putting pressure on the Euro, as the divergence in monetary policy between the ECB and the Fed grows.


🔍 Key Data Ahead: PMI Reports from EU and US

Looking ahead, traders will watch closely for:

  • Eurozone & German HCOB PMIs (April, preliminary)
  • US S&P Global Manufacturing & Services PMIs (April, flash)

These releases may provide fresh momentum for EUR/USD, particularly if data diverges from expectations.


📊 EUR/USD Technical Outlook

  • Immediate support: 1.1350 (psychological level)
  • Next support: 1.1300
  • Key resistance: 1.1450 and 1.1500

The bearish bias is likely to persist if ECB rate cut odds rise and US data continues to beat expectations.


📌 Stay tuned to DailyForex.pk for live forex news, EUR/USD forecasts, and data-driven trading insights.

Hamza Shah

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