EURUSD Climbs Above 1.1300 Ahead of Key German GDP Data
The euro strengthens as market sentiment shifts — here's what’s moving the markets:
➤ EUR/USD Rises to 1.1310 in Asian Trading
• The pair rebounds from Thursday’s losses as USD weakens.
• Decline in US Treasury yields weighs on the Greenback — 30-year bond yield retreats from 5.15%, a 19-month high.
➤ Market Cautious on US Fiscal Developments
• President Trump’s “One Big Beautiful Bill” passes House, now heads to the Senate.
• Concerns rise over US fiscal deficit and its implications on Fed policy.
➤ Data-Driven Moves:
• US Composite PMI (May): 52.1 vs. April’s 50.6
• Services & Manufacturing PMIs both climbed to 52.3
• Despite strong data, Fed’s Waller signals that tariff increases could lead to rate cuts later in 2025.
➤ US–EU Trade Tensions Brewing
• Trump administration pushes EU to reduce tariffs or face new duties.
• Trade Representative Greer to meet EU counterpart Šefčovič over the weekend.
➤ ECB Voices & Eurozone Outlook
• ECB’s Vujčić sees inflation nearing 2% target by end-2025.
• Bundesbank’s Nagel says current interest rates are not restrictive.
• Eurozone Services PMI dips below 50, while Manufacturing PMI inches up — signs of slow but resilient growth.
➤ Eyes on German Q1 GDP – Key Data to Watch Today
• Traders are bracing for German GDP figures as economic signals stay mixed.