American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

EUR/USD forecast: signal after ECB rate cut and US NFP data

by admin March 7, 2025
March 7, 2025

The EUR/USD exchange rate jumped to its highest level since November last year after the European Central Bank (ECB) slashed interest rates to aid the ailing economy. It also rose to 1.0853 ahead of the upcoming nonfarm payrolls (NFP) data and as the US dollar index crash accelerated. 

ECB interest rate decision

The latest ECB interest rate decision was the main catalyst for the EUR/USD exchange rate. In it, the bank decided to cut interest rates by 0.25%, bringing the total cuts during the cycle to about 1.75%. It was the sixth interest rate cut the bank has done in this cycle. 

The ECB slashed these rates to support an ailing economy that may worsen when Donald Trump imposes tariffs on the region. In her statement, Christine Lagarde maintained that the bank was vigilant and attentive to the ongoing global developments, including in the automobile sector. 

The ECB decision came as some European countries are committing to more spending, especially in the defense sector. Germany announced it would relax its borrowing structure, a move that pushed its bond yields higher. The government has hinted at spending billions of dollars to boost its defense now that the US government is siding with Russia.

The European economy has been sluggish in the past 12 months, and ECB officials have predicted that it would continue slowing this year. The bank sees it growing by 0.9% this year after growing by 1.2% last year. Also, inflation has moved to 2.4%.

US nonfarm payrolls data

The EUR/USD pair rose ahead of the latest US nonfarm payroll data. Economists polled by Reuters and Bloomberg estimate that the labor market softened in February as business confidence fell and Elon Musk engineered layoffs in the US government. 

The median estimate is that the economy created 153k jobs in February. This figure will likely be worse than expected because of the recent job cuts and the tariff expectations among executives. A similar report by ADP showed that the economy added just 77k jobs in February.

Analysts believe that the labor market will continue to decelerate this year if Trump’s tariffs remain. He is now implementing a 25% tariff on most goods imported from Mexico and Canada.

Companies will react to these tariffs by raising prices and cutting workers, a move intended to maintain their margins.

These jobs numbers come as many analysts anticipate that the Federal Reserve will deliver three interest rate cuts this year. Also, the data come as the US dollar index has crashed in the past few days.

EUR/USD technical analysis

EURUSD chart by TradingView

The daily chart shows that the EUR/USD exchange rate has done well in the past few weeks. It has jumped from a low of 1.0177 in January to 1.0853 this week. It moved above several important resistance levels at 1.0605, its lowest swing on April 16.

The EUR/USD pair has formed a mini golden cross pattern as the 50-day and 100-day moving averages crossed each other. Oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.

The pair has moved above the major S&R level of the Murrey Math Lines tool. Therefore, it will likely keep rising as bulls target the next key level at 1.100. 

However, with the US releasing its NFP numbers on Friday, there is a risk that the pair will retreat and retest the support at  1.0605. 

The post EUR/USD forecast: signal after ECB rate cut and US NFP data appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
2 reasons the Nikkei 225 index has crashed this year
next post
Global coffee crisis brews as soaring prices disrupt supply chains and rattle industry

Related Posts

Tesco share price megaphone pattern points to a...

April 16, 2025

Here’s why Bitcoin, Solana, Popcat, and Mantra prices...

November 5, 2024

Completion of Bookbuild for Non-Brokered A$2 Million Placement

April 4, 2024

AMC stock nears the make or break price:...

September 16, 2024

Hang Seng Index has collapsed. Here’s why it...

April 8, 2025

Crypto price predictions: Jasmy, Pepe coin, Fartcoin

March 27, 2025

Heritage Mining

February 8, 2024

Chinese Copper Smelters to Trim Output in Response...

July 19, 2024

Here’s why the DAX index surged to ATH...

September 27, 2024

ChemX – Investor Presentation

May 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (2,992)
    • Investing (2,449)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved