EUR/USD Awaits New Catalyst as Market Eyes Fed, Tariffs, and US Deficit

EUR/USD Awaits New Catalyst as Market Eyes Fed, Tariffs, and US Deficit

Euro Steady Ahead of Potential July Breakout

The EUR/USD pair remains range-bound as investors await fresh catalysts that could drive a sustained move toward the 1.20 mark. While momentum has slowed, market attention is locked on macroeconomic themes likely to dominate headlines through the first half of July.

Federal Reserve Expectations in Focus

With growing speculation about a potential Federal Reserve interest rate cut in September, the US Dollar may face continued downward pressure, giving the Euro room to appreciate. Traders are also monitoring upcoming US data that could further influence the Fed’s tone.

Trade Tensions and US Fiscal Concerns Loom Large

Uncertainty around tariff announcements and rising concerns over the US fiscal deficit are additional risk events that could weigh on the Dollar. If these pressures mount, EUR/USD could gain enough momentum to test or break the psychological 1.20 level.

Internal Linking Suggestions:

• US Dollar Index Near Three-Year Lows
• Eurozone Economic Calendar
• Fed Rate Decision Tracker