EUR/USD Slips to Mid-1.1300s Ahead of US PCE Index and ECB Decision

EUR/USD Slides to Mid-1.1300s; Focus Turns to US PCE and ECB Decision

The EUR/USD pair trades under mild bearish pressure near the mid-1.1300s during early Friday trading in Asia, unable to build on the rebound from the 1.1200 zone seen earlier in the week. The pair is down approximately 0.15% intraday, with sentiment weighed down by a stronger US Dollar (USD).

Risk Sentiment Shift Supports USD

Thursday’s sharp shift in global risk sentiment has led to safe-haven demand for the USD. The move was partly driven by a US federal appeals court temporarily reinstating broad Trump-era trade tariffs, introducing fresh uncertainty into global markets.

This legal decision bolstered the USD, dragging EUR/USD lower. However, the USD rally lacks full conviction, limited by concerns over the US fiscal trajectory and market speculation about potential Fed rate cuts in 2025.

🇪🇺 Euro Cushioned by Tariff Delay on EU

On the other hand, the Euro (EUR) remains supported by President Trump’s decision to delay new tariffs on the European Union, providing a counterbalance to broader market pessimism and softening the downside for the EUR/USD pair.

What to Watch Next

Traders now await the US PCE Price Index, due later Friday, which serves as the Federal Reserve’s preferred measure of inflation. A surprise in the data could shape market expectations ahead of the European Central Bank (ECB) policy meeting next Thursday.

Key Influencing Factors

• EUR/USD trades near 1.1340, mildly bearish on Friday
• US Dollar gains on safe-haven inflows, tempered by Fed rate cut bets
• Trump-era tariffs reinstated, raising market caution
• EU tariffs delayed, providing Euro with some stability
• Focus now on US PCE Index and upcoming ECB rate decision

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