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EUR/USD eases from highs with Fed Powell and US data on tap
Tuesday, 1 July 2025 19:09 WIB | EUR/USD |EUROPE

The EUR/USD pair keeps marching higher for the tenth consecutive day. The pair is trading with minor gains around the 1.1800 level at the moment of writing on Tuesday, ahead of the Fed Chairman's speech on the central bankers' meeting in Sintra, Portugal and US Manufacturing and Job Openings figures.

The common currency appreciated earlier today, fuelled by an unexpected improvement in the Eurozone preliminary HCOB Manufacturing PMI and better-than-expected German Unemployment figures, while June's Consumer Prices Index (CPI) remained fairly steady.

The Greenback remains on the defensive, hit by a mix of concerns about the chaotic US trade policy, mounting fears about the country's fiscal debt, and rising expectations that the Federal Reserve (Fed) will cut interest rates at least twice before the end of the year.

In the trade domain, optimism about Monday's rare earths deal between the US and China has been offset by US President Donald Trump's complaints about the discussions with Japan and US Treasury Secretary Scott Bessent's threats of higher tariffs.

Moreover, uncertainty about Trump's sweeping tax bill, which is struggling to make its way through the Senate, amid divisions within the republican party about its impact on the US fiscal debt, is adding pressure on the US Dollar.

Source: Fxstreet

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