EURUSD:

The EUR/USD pair has shown signs of stabilisation after a decline during the Asian session, reaching 1.0880. For the time being, it appears to have halted its corrective decline from the mid-1.1100 level, which was the highest point since September, reached last week. Spot prices are currently trading around 1.0960, with little change for the day as sentiment remains mixed.
The US Dollar (USD) failed to capitalise on Friday's recovery from a six-month low, and began the new week on a weak note. This was amid speculation that the US economy could enter a recession, and that this would force the Federal Reserve (Fed) to resume its rate-cutting cycle. Market analysis indicates the likelihood of the Fed implementing four quarter basis point rate cuts in 2025. This, along with a global flight to safety, is leading to a further sharp decline in US Treasury bond yields, which in turn is undermining the US Dollar and providing some support for EUR/USD.
However, traders are likely to exercise caution in making aggressive bullish bets on the common currency, in light of the risk of a further escalation of the trade war between the US and the European Union (EU). The 27-nation bloc faces 25 percent import tariffs on steel and aluminium as well as cars, and reciprocal tariffs of 20 percent on almost all other goods. In addition, on Monday, the European Commission will propose a list of U.S. goods that will be subject to additional duties in response to Trump's duties. This, along with global market fluctuations, could support the dollar and limit EUR/USD.
Moving forward, traders will be looking to the release of German industrial production and trade balance data, as well as Eurozone investor confidence from Sentix for further indications. However, the focus will remain on trade-related events, which will play a key role in influencing broader risk sentiment and driving demand for the dollar. This, in turn, could provide some momentum to EUR/USD and help traders capitalise on short-term opportunities.
Trading recommendation: SELL 1.0910, SL 1.1000, TP 1.0825
FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!
You can find more analytical information on our website