Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
28 Jan 2025

EUR/USD weakens below mid-1.0400s amid notable USD demand

  • EUR/USD retreats further from over a one-month peak amid resurgent USD demand.
  • Trump’s tariff threats and rebounding US bond yields provide a goodish lift to the buck.
  • Bets for a move aggressive policy easing by the ECB contribute to the intraday decline.

The EUR/USD pair extends the overnight modest pullback from the 1.0530-1.0535 region, or its highest level since December 17 and attracts heavy follow-through selling during the Asian session on Tuesday. Spot prices currently trade around the 1.0430 area, down over 0.50% for the day and seem vulnerable to weaken further amid a strong pickup in the US Dollar (USD) demand.

Investors remain concerned that US President Donald Trump's trade tariffs would reignite inflationary concerns, triggering a modest recovery in the US Treasury bond yields. This, in turn, assists the USD Index (DXY), which tracks the Greenback against a basket of currencies, to stage a solid bounce from over a one-month low touched on Monday and exerts downward pressure on the EUR/USD pair. 

Meanwhile, Trump earlier this month had threatened to impose tariffs on Mexico, Canada, China and the European Union (EU). This, along with rising bets for a supersized rate cut by the European Central Bank (ECB) on Thursday, undermines the shared currency and contributes to the EUR/USD pair's decline. Bears, however, might refrain from placing aggressive bets ahead of the key central bank event risks.

The US Federal Reserve (Fed) is scheduled to announce its policy decision at the end of a two-day meeting on Wednesday, which will be followed by the ECB meeting on Thursday. The latest monetary policy updates should provide a fresh directional impetus to the EUR/USD pair. In the meantime, traders on Tuesday will take cues from the US macro data to grab short-term opportunities later during the US session.

The US economic docket features the release of Durable Goods Orders, the Conference Board’s Consumer Confidence Index and the Richmond Manufacturing Index. Nevertheless, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through selling before confirming that the EUR/USD pair’s recent recovery from over a two-year trough has run its course.

Economic Indicator

ECB Rate On Deposit Facility

One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.

Read more.

Next release: Thu Jan 30, 2025 13:15

Frequency: Irregular

Consensus: 2.75%

Previous: 3%

Source: European Central Bank

 

Jan 28, 2025

US Dollar Index jumps to near 108.00, Trump tariff policies in focus

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, drifts higher to near 107.95, snapping the three-day losing streak during the Asian trading hours on Tuesday.
Read more Previous
Jan 28, 2025

AUD/JPY holds gains near 97.50, upside seems limited due to differing policy outlook

AUD/JPY edges higher after registering more than 1% losses in the previous session, trading around 97.30 during the Asian hours on Tuesday.
Read more Next