Created
: 2025.07.24
- 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 extends the rally above 1.1750 ahead of ECB rate decision
World FX news
Breaking news
EUR/USD extends the rally above 1.1750 ahead of ECB rate decision
New
2025.07.24 14:11
2025.07.24 14:11
2025.07.24 14:11
- EUR/USD gathers strength to near 1.1775 in Thursday's early European session.
- EU and US move closer to a trade deal as the tariff deadline looms.
- The ECB is anticipated to leave interest rates unchanged for the first time in more than a year.
The EUR/USD pair extends its upside to around 1.1775 during the early European session on Thursday. The Euro (EUR) edges higher against the US Dollar (USD) amid hope for the European Union (EU) and the United States (US) trade deal. All eyes will be on the European Central Bank (ECB) later on Thursday, with no change in rate expected.
The EU and the US are moving toward a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions. Optimism surrounding the trade deal provides some support to the shared currency. European trade negotiators were trying to negotiate a deal to avoid the 30% tariff rate that Trump has announced he would slap on imports from the EU on August 1.
Nonetheless, the bloc plans 93 billion euros in counter-tariffs if no deal is reached, which might escalate trade tensions. Any signs of negative developments surrounding US-EU trade talks could exert some selling pressure on the EUR against the USD.
The ECB is expected to leave the deposit rate unchanged at 2.0% at its July meeting on Thursday as policymakers await clarity on what US President Donald Trump's tariffs will do to inflation. ECB President Christine Lagarde is likely to keep all options on the table during the press conference. Any hawkish comments from ECB policymakers could underpin the EUR in the near term.
Later on Thursday, the preliminary reading of US Purchasing Managers Index (PMI) data for July will be in the spotlight. Also, the weekly US Initial Jobless Claims, New Home Sales, and the Chicago Fed National Activity Index will be released later on the same day.
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
: 2025.07.24
Related articles
Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
2025.07.26 01:11USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears
2025.07.26 01:07GBP/USD sinks as strong US data, weak UK Retail Sales weigh
2025.07.26 01:05EU Officials: European framework trade deal with US could happen this weekend
2025.07.25 23:49
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
WTI Crude Oil falls below $65 amid rising output and cloudy demand signals
West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects.
New
2025.07.26 03:13Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
The Canadian Dollar (CAD) took another hit on Friday, extending into a two-day backslide against the US Dollar (USD) as Loonie traders hunker down for a fresh bout of tariff-fueled tirades from United States (US) President Donald Trump.
New
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
Since US President Trump's reciprocal tariffs address on April 2, the EUR is the second best performing G10 currency after the safe-haven CHF, Rabobank's FX analyst Jane Foley reports.
New
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
The Australian Dollar (AUD) is losing ground against the US Dollar (USD) on Friday, pressured by rising US Treasury yields that continue to support demand for the Greenback.
New
2025.07.26 01:11USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears
The Swiss Franc (CHF) loses ground for a third consecutive day against the US Dollar (USD) on Friday, pressured by improving risk sentiment and a rebound in the US Dollar.
New
2025.07.26 01:07GBP/USD sinks as strong US data, weak UK Retail Sales weigh
The GBP/USD tumbles to a day's low after clearing the 1.3500 figure, following economic data from the United States (US) that justified the Federal Reserve's need to maintain its current monetary policy. Conversely, UK Retail Sales disappointed investors after missing the mark.
New
2025.07.26 01:05EU Officials: European framework trade deal with US could happen this weekend
Citing European Union (EU) officials and diplomats, Reuters reported on Friday that the EU and the United States (US) could each a framework deal on trade this weekend.
New
2025.07.25 23:49EUR/USD flattens as US Dollar Firms; Trump Sees "50-50 Chance" of EU trade deal
The Euro (EUR) trades with a negative tone against the US Dollar (USD) on Friday as the Greenback regains upward momentum, supported by resilient US economic data, renewed trade optimism, and expectations that the Federal Reserve (Fed) will leave interest rates unchanged at its upcoming monetary pol
New
2025.07.25 23:26USD/JPY climbs as improved risk appetite, firm US Dollar weigh on Yen
The Japanese Yen (JPY) is weakening against the US Dollar (USD) on Friday as risk-on sentiment and widening interest rate differentials continue to pressure the Yen.
New
2025.07.25 23:01US President Trump: Powell might be ready to lower rates
United States (US) President Donald Trump said on Friday that he had a good meeting with Federal Reserve (Fed) Chairman Jerome Powell on Thursday and added that the got the impression Powell might be ready to cut interest rates, per Reuters.
New
2025.07.25 22:33Disclaimer:
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
