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EUR/USD rises as US-EU policy divergence widens amid trade tensions

financefeeds.com Sentiment: Positive
EUR/USD has gained momentum as diverging monetary policy outlooks between the Federal Reserve and European Central Bank reshape currency dynamics. The dollar faces pressure from expectations of potential Fed rate cuts later in 2025, while the ECB maintains a more hawkish stance amid persistent Eurozone inflation concerns. Renewed trade tensions between the US and both China and the EU are weighing on risk sentiment, with potential tariff implementations creating uncertainty for global growth prospects. Recent US economic data showed resilience in consumer spending and employment figures, though manufacturing indicators remain mixed. Technical levels show EUR/USD testing resistance near 1.0950, with support established around 1.0880. Traders are closely monitoring upcoming Fed minutes and ECB policy statements for further directional cues. The combination of policy divergence and trade uncertainties suggests continued volatility in the pair, with upside potential if European data continues to outperform expectations.

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News data provided by Marketaux. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.

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