Trading Ideas

EUR/USD is overbought on the weekly and sellers had an open door to drive a deeper pullback earlier this week. But, so far, they’ve failed to push through the first area of support at the 1.1275 Fibonacci level.

EUR/USD has sold off for six days in a row, but is now catching a bounce from the 200-day moving average.

EUR/USD may stage further attempts to test the January high (1.0533) ahead of the ECB interest rate decision as it snaps the series of lower highs and lows from last week.

GBP/USD and FTSE 100 futures are at critical levels as US tariff risks cloud the outlook. With Washington targeting VAT in its trade assessments, UK markets may have underestimated the fallout. Could this be a turning point for sterling and stocks?

Trump tariffs are zeroing in on Europe although there’s still a large amount of uncertainty. The pair responded to the threat with a strong sell-off at the open, that it’s now trying to claw back.

Central banks are pulling back on rate cut signals, with the Fed, BoC, and Riksbank all hitting pause. With markets betting on aggressive ECB easing, could traders be caught offside if the script changes?

The upcoming week could kick off with a bang, even though Wall Street will sit Monday out due to Martin Luther King Day. Donald Trump is set to begin his second term as US President on the same day, ensuring a headline-filled start to the trading week.

It was a brutal Q4 for EUR/USD as the pair had its most bearish quarterly outlay since Q3 of 2022. But – that prior instance marked a key low and the final month of Q4 showed a higher-low in the pair.

Divergent monetary policies between the ECB and BOJ alongside trade wars and demand for safety could make things tricky for EUR/JPY bulls in 2025.

Traders are eyeing the European Central Bank, which is set to announce its interest rate decision tomorrow. Market participants are eager to see if the ECB will maintain its cautious stance or signal any changes in policy amid the ongoing economic challenges in the Eurozone. This week’s developments could set the tone for EUR/USD outlook in the coming weeks.

While the headlines out of Europe have been largely negative, price action in the Euro hasn’t quite matched that pace. EUR/USD continues to push-higher while holding 1.0500 and EUR/JPY has pulled back from the early-week sell-off.