Created
: 2025.09.01
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
EUR/USD hovers near 1.1700 amid rising bets of Fed rate cuts
World FX news
Breaking news
EUR/USD hovers near 1.1700 amid rising bets of Fed rate cuts
New
2025.09.01 09:58
2025.09.01 09:58
2025.09.01 09:58
- EUR/USD gains ground as the US Dollar struggles aid rising likelihood of a Fed rate cut in September.
- San Francisco Fed President Mary Daly said that policymakers are preparing to lower interest rates soon.
- ECB's Olli Rehn stated that the current uncertainty surrounding inflation trends requires "flexibility" in policymaking.
EUR/USD extends its winning streak for the fifth successive session, trading around 1.1700 during the Asian hours on Monday. The pair appreciates as the US Dollar (USD) faces challenges amid rising bets of an interest rate cut by the US Federal Reserve (Fed) in the September meeting. United States (US) markets will observe Labor Day holiday on Monday.
However, Friday's data showed that United States (US) inflation rose in July, which could be attributed to the US President Donald Trump's tariffs. The US core Personal Consumption Expenditures (PCE) Price Index, which excludes volatile food and energy prices, rose 2.9% year-over-year in July, as expected and following June's increase of 2.8%. On Monthly basis, the core PCE Price Index rose 0.2% and 0.3%, respectively.
San Francisco Fed President Mary Daly said on Sunday that policymakers will be ready to cut the interest rates soon, adding that inflation stemming from tariffs will likely prove temporary, per Bloomberg.
Additionally, Fed Governor Christopher Waller on Thursday reiterated his support for a cut, saying he would entertain a larger move if labor market data continue weakening. The rising Fed rate cut bets and dovish remarks from Fed officials could drag the Greenback lower and act as a tailwind for the pair in the near term.
European Central Bank (ECB) Governing Council member Olli Rehn said on Sunday that current uncertainty over inflation developments calls for "flexibility" in policymaking. Rehn added, "There are more downside risks to inflation stemming from a stronger Euro (EUR), cheaper energy and easing of core inflation, together with the damage trade-policy has caused to the global economy." "Rate decisions are taken meeting by meeting, based on the latest available data," reported by Bloomberg.
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.09.01
Related articles
Canadian Dollar falls once again as Loonie support withers
2025.09.11 03:11Forex Today: Focus shifts to US CPI, while the ECB is seen "on hold"
2025.09.11 03:10WTI rises as geopolitical tensions overshadow bearish US EIA data
2025.09.11 03:05Dow Jones Industrial Average misses out on post-PPI rally, declines over 200 points
2025.09.11 01:30Swiss Franc gains after weak US PPI; SNB's Schlegel signals cautious stance
2025.09.11 00:35United States FX Today: The US Dollar hinges on CPI inflation data
2025.09.11 00:08
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar falls once again as Loonie support withers
The Canadian Dollar eased further on Wednesday, declining around one-sixth of one percent and putting the USD/CAD pair on track to challenge its key 200-day Exponential Moving Average (EMA).
New
2025.09.11 03:11Forex Today: Focus shifts to US CPI, while the ECB is seen "on hold"
Mounting speculation of further rate cuts by the Federal Reserve next week weighed down the US Dollar (USD) on Wednesday, a view reinforced after US Producer Prices rose less than expected in August.
New
2025.09.11 03:10WTI rises as geopolitical tensions overshadow bearish US EIA data
West Texas Intermediate (WTI) Crude Oil surges on Wednesday, extending its winning streak for a third straight day as geopolitical tensions outweighed bearish US inventory data.
New
2025.09.11 03:05Gold climbs to $3,646 as soft US PPI and geopolitical risks lift safe-haven demand
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meeting. At the time of writing, XAU/USD trades at $3,646, shy of the record high of $3,674.
New
2025.09.11 02:01Dow Jones Industrial Average misses out on post-PPI rally, declines over 200 points
The Dow Jones Industrial Average (DJIA) missed the mark on Wednesday, shedding over 200 points from the open. US Producer Price Index (PPI) inflation came in below expectations, bolstering bets of interest rate cuts from the Federal Reserve (Fed) next week.
New
2025.09.11 01:30Swiss Franc gains after weak US PPI; SNB's Schlegel signals cautious stance
The Swiss Franc (CHF) strengthens modestly against the US Dollar (USD) on Wednesday, with USD/CHF trimming intraday gains as the Greenback softens after softer-than-expected US Producer Price Index (PPI) figures further cemented market expectations that the Federal Reserve (Fed) will cut interest ra
New
2025.09.11 00:35United States FX Today: The US Dollar hinges on CPI inflation data
The US Dollar (USD) is moving cautiously on Wednesday, down slightly on the day according to the US Dollar Index (DXY), as markets hold their breath ahead of the eagerly awaited publication of the August Consumer Price Index (CPI) in the United States (US).
New
2025.09.11 00:08GBP/USD holds near 1.3550 as soft US PPI boosts Fed cut bets
The GBP/USD hoovers around the 1.3550 figure for the third straight day after the latest inflation report in the United States (US) showed that prices paid by producers dipped in August, increasing the chances for an interest rate cut by the Federal Reserve.
New
2025.09.11 00:07Eurozone FX Today: The ECB's pause comes under scrutiny
The Euro (EUR) is holding steady against the US Dollar (USD), trading at 1.1710 on Wednesday. A wait-and-see attitude prevails ahead of the European Central Bank's (ECB) monetary policy meeting, scheduled for Thursday at 12:15 GMT.
New
2025.09.10 23:32EUR/USD steadies above 1.1700 after US PPI miss, attention shifts to ECB
The Euro (EUR) is edging modestly higher against the US Dollar (USD) on Wednesday, as the Greenback lost momentum after weaker-than-expected US Producer Price Index (PPI) figures added to market bets that the Federal Reserve (Fed) will deliver a rate cut next week.
New
2025.09.10 22:38Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
