Euro Hits Yearly Lows, Pound Dips Below 1.2800

FXOpen

Looking at recent moves in major currency pairs, it’s clear that market participants have come to terms with Donald Trump's victory in the U.S. presidential election and are starting to prepare for changes to the global economic landscape. Among the new president’s campaign promises was the introduction of additional tariffs on imports to the U.S. For instance, Trump has proposed around a 25% tariff on Mexican imports and a range of 10% to 20% for goods from European nations. Unsurprisingly, the prospect of potential trade wars is impacting the pricing of pairs such as EUR/USD and GBP/USD.

EUR/USD

The Euro has been in decline for the second consecutive week. Yesterday, it hit a new yearly low near 1.0600 but found support at 1.0590, bouncing slightly. If the 1.0600-1.0580 range turns into resistance, the pair may test the lows seen in 2023, around 1.0520-1.0460. A sustained upward move is likely only if the pair firmly clears 1.0730-1.0680.

The following news could significantly influence EUR/USD pricing:

  • Today at 11:00 (GMT +3), a European Central Bank meeting on non-monetary policy
  • Today at 13:30 (GMT +3), Germany's 10-year treasury bond auction
  • Today at 16:30 (GMT +3), release of the U.S. core consumer price index (CPI)

GBP/USD

Yesterday, GBP/USD sellers broke through a critical support range at 1.2830-1.2800, with the price declining to 1.2720 before correcting to 1.2760. The price’s behavior around the 1.2800-1.2760 range will be key for identifying the next trend. A rejection at this level may lead to further declines towards 1.2720-1.2700, while a break above 1.2800 could signal the start of an upward correction.

Key events that could affect GBP/USD today:

  • 12:45 (GMT +3) – Speech by Bank of England Monetary Policy Committee member Catherine Mann
  • 13:00 (GMT +3) – Release of data on the sale of 4-year treasury securities in the UK
  • 21:30 (GMT +3) – Speech by Federal Reserve official Jeffrey Schmid

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

Commodity Currencies Reach New Lows

The rally in Bitcoin, meme coins, and the US dollar that followed Donald Trump’s presidential victory continues to gain momentum. The tariff cuts announced by the new president-elect have already contributed to declines in gold and commodity prices. Combined

Analytical DOT Price Forecasts for 2024, 2025–2030, and Beyond
Trader’s Tools

Analytical DOT Price Forecasts for 2024, 2025–2030, and Beyond

Polkadot has quickly become a standout in the blockchain space, known for its ability to connect multiple chains and foster interoperability. As the demand for scalable, cross-chain solutions grows, Polkadot’s future has potential. In this article, we explore various

Indices

S&P 500 Index Stabilises Near Resistance Block

The ATR indicator on the S&P 500’s 4-hour chart (US SPX 500 mini on FXOpen) currently shows a reduction in price volatility.

This drop in volatility can likely be attributed to:
→ The market having fully absorbed the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.