Key Economic Factors Impacting the Euro

By Samir El Khoury, ACSI, ACICMP?

The EUR/USD pair rose to 1.0628 yesterday, marking its highest level since December 6, 2024, after trading in a sideways range between the support level of 1.0200 and the resistance level of 1.0500 over the past three months.

The factors pressuring the euro:

Expected ECB Rate Cuts:

• The European Central Bank (ECB) is expected to continue cutting interest rates by 25 basis points on Thursday, March 6, 2025, marking the sixth rate cut since it began its accommodative monetary policy in June of last year. Further rate cuts are anticipated, especially as economic data from Germany and France, the two largest economies in Europe, still indicate signs of weakness.
• Additionally, political uncertainties within Europe, particularly the rise of far-right parties, are increasing uncertainty regarding several key economic issues.

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Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.