EUR/USD Analysis - 23.05.2025
EUR/USD Rebounds, Eurozone Data Eyed
EUR/USD climbed to around 1.1310 during Friday’s Asian session, rebounding as U.S. Treasury yields declined, the 30-year yield slipped from its 19-month high of 5.15%, weighing on the dollar. The recovery follows the House passing Trump’s fiscal bill, which revived deficit worries. Earlier, strong U.S. PMI figures (Composite: 52.1, Manufacturing & Services: 52.3) had briefly strengthened the dollar.
Fed Governor Waller hinted at possible rate cuts if tariffs stabilize, while Trump renewed threats of higher tariffs on the EU. On the European front, ECB officials expect inflation to return to near 2% by end-2025, though growth remains subdued. Eurozone PMIs showed services at 48.9 and manufacturing at 49.4. Focus now shifts to Germany’s GDP release.
Resistance is at 1.1390, with higher levels at 1.1460 and 1.1580. First support lies at 1.1260, followed by 1.1100 and 1.1050.
