Euro Slides Under $1.04 as Flurry of News Rejiggers Forex Markets — TradingView

Fed holds rates, ECB cuts rates. GDP data on both sides of the Atlantic and Trump’s tariffs hit the currency markets this week.

🌊 Euro Dives Under $1.04

• The EURUSD pair is once again in despair. After a jam-packed week of news and reports, the euro succumbed to pressures and fell below $1.04, en route to close out the fourth straight day of losses. And as it was falling, it pierced through the 50-day moving average, indicating short-term bearishness.
• So what’s been going on? Let’s catch you up: the Federal Reserve on Wednesday kept interest rates flat (supporting the dollar narrative) and said inflation has been a growing worry.

⚔️ EU GDP vs US GDP

• But more than that, the European Central Bank on Thursday dropped its benchmark interest rates by another 25 basis points to 2.75%. And, what’s even more, officials warned of “headwinds” for the European economy. An early sign of that warning was the quarterly GDP data, which flatlined, missing expectations of 0.1% growth.
• Stateside, the US also released its own GDP data, but flexed growth of 2.3% October through December. While it did miss estimates of 2.6%, it was a healthy clip and signaled a resilient economy.

🛑 Tariffs Dent Euro Optimism

• President Trump topped it off late Thursday by saying that the US is slapping a 25% tariff on Mexico and Canada, effective Saturday, February 1. The news didn’t sound good to euro buyers, who are now anticipating Trump to target the eurozone.
• It hasn’t been a great time to be a euro bull. The continued rate cutting actions from the ECB have knocked the wind out of the euro, leaving it vulnerable to speculation and attack.