The post Euro gathers strength above 1.1750 as Fed rate cut prospects pressure US Dollar appeared on BitcoinEthereumNews.com.

The EUR/USD pair trades in positive territory around 1.1775 during the early Asian session on Monday. The prospect of a US Federal Reserve (Fed) rate cut in 2026 weighs on the US Dollar (USD) against the Euro (EUR). Markets brace for US President Donald Trump to nominate a Fed chair to replace Jerome Powell, whose term ends in May. Later on Monday, the US Pending Home Sales report for November will be released.  The US central bank cut the federal funds rate by 25 basis points (bps) at its December policy meeting, bringing the target range to 3.50%-3.75%. The Fed delivered a cumulative 75 bps of rate cuts in 2025 amidst a cooling labor market and slightly elevated inflation. Markets are also pricing in two additional rate reductions next year, which could drag the Greenback and create a tailwind for the major pair.  The possibility that a new Fed Chair to replace Jerome Powell could look to cut rates next year might contribute to the USD’s downside. Trump said that he expects the next Fed chairman to keep interest rates low and never “disagree” with him. Across the pond, the European Central Bank (ECB) held interest rates steady earlier this month and signaled they would likely remain so for some time. ECB President Christine Lagarde noted that the central bank cannot provide forward guidance on future rate moves due to high uncertainty, emphasizing a data-dependent, meeting-by-meeting approach.   The money markets have priced in for a 25 bps interest rate cut by the ECB in February 2026, currently remaining below 10%. Signals that the ECB rate cut cycle is ending could underpin the shared currency in the near term.  Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the…

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Filed under: News - @ December 29, 2025 12:20 am