The EUR/USD currency pair has fallen to near 1.0830 as the US Dollar strengthens during North American trading hours. The US Dollar Index (DXY) has risen to approximately 104.00. This movement comes after the Federal Reserve maintained borrowing rates steady and stuck to their forecast of two interest rate cuts in 2025. The Fed expressed concerns that President Trump’s policies could weigh on US economic growth and accelerate price pressures.
The Federal Reserve Chair, Jerome Powell, emphasized no rush for monetary policy adjustments due to the uncertainty surrounding President Trump’s policies. Meanwhile, European Central Bank (ECB) President Christine Lagarde warned that potential US tariffs could reduce Eurozone economic growth by about 0.3% in the first year, with retaliatory tariffs from Europe potentially increasing this impact to around 0.5%.
Technical analysis indicates that despite the fall, the long-term outlook for EUR/USD remains bullish as it holds above the 200-day Exponential Moving Average (EMA). — news from FXStreet