Euro Steady Amid Uncertainty
🗓️ NEWS | August 28, 2025 | 07:40 GMT | By Guillermo Alcala
The EUR/USD currency pair remains nearly flat in early Thursday European trading, consolidating around 1.1640 after rebounding from multi-week lows near 1.1585.
Investor sentiment was boosted on Wednesday after New York Federal Reserve President John Williams signaled openness to a potential interest rate cut in September. His comments led to a decline in US Treasury yields and weakened the US Dollar, helping the Euro recover some ground.
In an interview with CNBC, Williams stated that “every meeting is live,” and emphasized that rates are likely to trend lower over time. These remarks reinforced market expectations for a 25 basis point rate cut next month, with futures markets now pricing in nearly a 90% probability.
The US Dollar also faced pressure from domestic tensions earlier this week, as President Trump attempted to remove Fed Governor Lisa Cook. Although the move was met with legal resistance, it added to concerns about the central bank’s independence and contributed to the Dollar’s decline.
Meanwhile, political uncertainty in Europe—particularly in France—has limited the Euro’s upside. Opposition parties have refused to back Prime Minister Françoise Bayrou in a September confidence vote, potentially triggering a government resignation and snap elections.
📊 On the economic calendar, Thursday is relatively light. Europe will release August’s Consumer Confidence and Economic Sentiment Index data, while the US is expected to revise its Q2 GDP growth slightly upward to 3.1%. However, the impact on FX markets is expected to be limited, as traders await Friday’s PCE Price Index report for clearer signals on the Fed’s next move.
EUR/USD continues to trade within its recent range, with immediate support at 1.1585. The pair’s short-term bias remains mildly bearish, as the Relative Strength Index (RSI) hovers near 50 and price action shows a series of lower highs and lows.
Resistance is seen at 1.1670, with a stronger barrier at 1.1730–1.1740, where trendline resistance and previous highs converge. On the downside, a break below 1.1585 could expose 1.1562 (50% Fibonacci retracement of the August rally), followed by 1.1530, the low from August 5.