The EUR/USD currency pair has tanked to two-week lows, trading around 1.1680 as of Thursday. The Euro is plunging to record low against the US Dollar. That decline has now broken through the important psychological support barrier of 1.1700. That decline is largely due to a very strong return of the US Dollar. This increase led to a pessimistic outlook across the entire market.
Market analysts give EUR/USD a bearish outlook. This trend is worsened by traders’ risk-averse sentiment, especially hitting currencies linked to risk, like the British Pound. Very strong US economic data has added further downside pressure on the Euro. Moreover, remarks from Federal Reserve officials have affected the prevailing trading environment.
Recent Performance of EUR/USD
As the EUR/USD pair heads further south trade wise, its most recent price action shows us a clear bearish structure. Since the pair has touched below the former-1.1700 supportive level, the fears for its future have been prompted. Combined with exceptionally strong recent economic data from the US economy that has bolstered the Dollar that just adds to the Euro’s miserable predicament.
The EUR/USD has seen a steady downtrend which can be seen in our multi-market chart below. A graphic showing the EUR/USD’s fall to two-week lows around 1.1680 makes that case more strongly. Traders have never been more bearish ahead of expected declines associated with EUR/USD. The recently released bearish object image illustrates this developing sentiment amongst them.
“Real-time” – source: [“quotes” – source]
This skittish market behavior isn’t limited to the U.S. dollar either. The British Pound, along with its other risk-linked counterparts, are under the same duress as markets digest the power of a strengthening Dollar.
Implications of Strong US Economic Data
This last US Dollar panic is specifically connected to the slew of really positive economic data coming out of the United States. Retail traders have been hanging onto every word from Federal Reserve rate setters, who have only served to bolster expectations for interest rates rising. These feelings have combined to create a very bullish view on the Dollar and changed the trading picture of EUR/USD.
Economic data is increasingly making the case for a strong Dollar. Some analysts are cautioning that the Euro is headed for even deeper drops in the near-term. The ramifications of this profound trend will reach well past individual trading days and could pose risks to long-term plans by currency traders.
Outside of the currency trading dynamics, there is a strong inverse correlation between Gold and EUR/USD. Gold has fallen, with prices down to about $3,720. This negative trend may create additional headwinds for the Euro as market players rethink their approaches amid erratic commodity prices.
Navigating EUR/USD Trading in 2025
For traders hoping to capitalize on the anticipated rise in EUR/USD trading volume in 2025, choosing a reputable broker is still a key consideration. The top brokers for trading EUR/USD offer tight spreads. They ensure fast executions, which are critical characteristics for traders who wish to maximize their potential profits.
Detailed data about these leading brokers can be found on financial currency trading platforms. Notably, FXStreet offers comprehensive resources for traders. Their guide on the best brokers to trade EUR/USD with is packed full of helpful information. It matches traders with the brokers that fit them like a glove.
If you’re still looking to get up to speed with these brokers, have a look at our best brokers to trade EUR/USD. Read them all for eye-opening comparisons and insightful suggestions!
“$2,000 or 50% of the purchase price of eligible securities bought on margin or 50% of the proceeds of short sales” – Regulation T of the Federal Reserve Board