Euro Weakens as ECB Signals Rate Reductions

Feb 3

The euro dropped to $1.02, marking its lowest level in three weeks, as the U.S. dollar strengthened following President Donald Trump's decision to implement tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods starting Tuesday. Trump has also warned of potential tariffs on the European Union, prompting the region to vow a strong response. These factors added to the pressure on the euro, which was already weakened by the European Central Bank's dovish stance.

Last week, the ECB cut interest rates by 25 basis points as expected and signaled the possibility of further reductions later this year. Currently, market traders are factoring in the likelihood of three additional ECB rate cuts by the end of 2025.

From a technical perspective, the first resistance level is at 1.0300, with further resistanc

Feb 3

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From a technical perspective, the first resistance level is at 1.0300, with further resistance levels at 1.0350 and 1.0450 if the price breaks above. On the downside, the initial support is at 1.0220, followed by additional support levels at 1.0180 and 1.0120.