EUR/USD edges lower to near 1.1300, traders await US ISM Services PMI
The post EUR/USD edges lower to near 1.1300, traders await US ISM Services PMI appeared on BitcoinEthereumNews.com.
EUR/USD edged lower on Monday as potential trade tensions weighed down market sentiment. President Donald Trump announced plans to initiate a 100% tariff on foreign-produced films, raising concerns over escalating protectionist policies. Eurozone Harmonized Index of Consumer Prices remained steady at 2.2% YoY in April, slightly above the expected 2.1%. EUR/USD is kicking off the week on a weaker note, trading near 1.1320 during the Asian session on Monday. US President Donald Trump confirmed he would not seek to remove Federal Reserve (Fed) Chair Jerome Powell before his term ends in May 2026. While Trump criticized Powell, calling him “a total stiff,” he reiterated that interest rates should eventually be lowered. Additionally, the EUR/USD pair faces headwinds possibly from potential trade tensions. Trump announced plans to direct the US Trade Representative and Commerce Department to begin the process of imposing a 100% tariff on foreign-produced movies. On the data front, the US Nonfarm Payrolls (NFP) report showed a stronger-than-expected rise of 177,000 jobs in April, following a revised 185,000 increase in March. This beat the market forecast of 130,000. The unemployment rate remained steady at 4.2%, while average hourly earnings held at 3.8% year-on-year. Later on the day, traders will watch for the US ISM Services PMI for further direction. The Euro found some support on Friday after stronger-than-expected Eurozone inflation figures. Harmonized Index of Consumer Prices held steady at 2.2% year-over-year in April, slightly above the forecasted 2.1%. Services inflation accelerated to 3.9%, and core inflation (excluding food and energy) rose to 2.7%, both above expectations. These readings reinforced market expectations for a cumulative 60 basis points (bps) in European Central Bank (ECB) rate cuts by year-end. Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second…
Filed under: News - @ May 5, 2025 1:20 am