Created
: 2025.09.08
- 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 remains above 1.1700 amid rising Fed rate cut bets
World FX news
Breaking news
EUR/USD remains above 1.1700 amid rising Fed rate cut bets
2025.09.08 10:16
2025.09.08 10:16
- EUR/USD may further appreciate as the US Dollar could face challenges with a September Fed rate cut becoming increasingly likely.
- CME FedWatch tool indicates a pricing in 92% of a 25-basis-point Fed rate cut in September, following August jobs data.
- The European Central Bank is widely expected to keep rates unchanged at Thursday's policy meeting.
EUR/USD inches lower after registering more than 0.5% gains in the previous session, trading around 1.1710 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) recovers its recent losses, after weaker-than-expected August jobs data heightened concerns over a slowing economy and reinforced expectations of United States (US) Federal Reserve (Fed) rate cuts.
US Bureau of Labor Statistics (BLS) reported on Friday that the US Nonfarm Payrolls (NFP) rose by 22,000 in August, falling short of the market expectations of 75,000. This figure followed the 79,000 increase (revised from 73,000) recorded in July. Meanwhile, the Unemployment Rate increased to 4.3% August, as expected, against the 4.2% prior. Average Hourly Earnings increased 0.3% MoM in August, in line with expectations.
The CME FedWatch tool indicates a pricing in 92% of a 25-basis-point (bps) rate cut by the Fed at the September policy meeting, up from 86% a week ago, with bets rising on a potential 50 bps reduction this month.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said in an interview on Bloomberg TV on Friday that he is still unsure whether September is the right time for an interest rate cut, following weaker jobs data. He added that high inflation data is still cause for concern, and key Fed officials may not be fully sold on a September rate cut.
In the Eurozone, the focus now shifts to the European Central Bank (ECB) meeting due on Thursday, where markets broadly expect policymakers to keep rates unchanged for the second consecutive meeting, supported by steady growth and inflation hovering near the target.
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
: 2025.09.08
Related articles
US Dollar Index (DXY) slides to 97.50, one-week low amid Fed rate cut bets, government shutdown
3 minutes agoFX option expiries for Oct 1 NY cut
44 minutes agoUSD/CHF extends downside to near 0.7940 on US government shutdown
51 minutes agoEUR/JPY hangs near two-week low, around mid-173.00s ahead of Eurozone inflation data
2025.10.01 14:38USD/INR drops as RBI holds Repo Rate steady at 5.5%, raises GDP forecasts
2025.10.01 14:22GBP/USD rises above 1.3450 on rising odds of further Fed rate cuts
2025.10.01 14:22
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
US Dollar Index (DXY) slides to 97.50, one-week low amid Fed rate cut bets, government shutdown
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, remains under some selling pressure for the fourth straight day and drops to a one-week low heading into the European session on Wednesday.
New
2025.10.01 15:45FX option expiries for Oct 1 NY cut
FX option expiries for Oct 1 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.10.01 15:04USD/CHF extends downside to near 0.7940 on US government shutdown
The USD/CHF pair slides further to 0.7940 during the European trading session on Wednesday. The Swiss Franc pair weakens as the US Dollar (USD) extends its downside, following the United States (US) government shutdown.
New
2025.10.01 14:57EUR/JPY hangs near two-week low, around mid-173.00s ahead of Eurozone inflation data
The EUR/JPY cross attracts fresh sellers following an Asian session uptick to the 174.00 neighborhood and drops back closer to a two-week trough touched earlier this Wednesday.
New
2025.10.01 14:38USD/INR drops as RBI holds Repo Rate steady at 5.5%, raises GDP forecasts
The Indian Rupee (INR) attracts bids against the US Dollar (USD) after the monetary policy announcement by the Reserve Bank of India (RBI).
New
2025.10.01 14:22GBP/USD rises above 1.3450 on rising odds of further Fed rate cuts
GBP/USD extends its winning streak for the fourth successive session, trading around 1.3460 during the Asian hours on Wednesday. The pair may further appreciate as the US Dollar (USD) faces challenges after soft US jobs data increased the odds of Federal Reserve (Fed) rate cuts.
New
2025.10.01 14:22India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Wednesday, according to data compiled by FXStreet.
New
2025.10.01 13:37US government starts closure of most operations
The United States (US) government starts shutting down its operations as Congress fails to advance the funding bill.developing story ...
New
2025.10.01 13:14Gold eases after refreshing record high; bullish potential seems intact
Gold (XAU/USD) witnessed good two-way price swings on Tuesday and settled near the top end of its daily range, registering its biggest monthly percentage gain since August 2011.
New
2025.10.01 13:08EUR/USD stays near 1.1750 ahead of potential US government shutdown, HICP inflation
EUR/USD moves little after three days of gains, trading around 1.1730 during the Asian hours on Wednesday. The pair remains steady ahead of the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) due later in the day.
New
2025.10.01 12:53Disclaimer:
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
