EURUSD EUR/USD Rises to 1.12 as ECB Cut Bets Grow
The euro rose to $1.12 on Friday, supported by a softer U.S. dollar following weaker inflation data and lingering caution around U.S.-China trade developments. Although a 90-day tariff truce was reached, U.S. tariffs on Chinese goods remain elevated at around 40%, maintaining trade friction. Meanwhile, the market is nearly fully pricing in a European Central Bank rate cut in June, with expectations of the deposit rate falling to 1.79% by year-end. ECB policymakers have signaled further easing may be needed as inflation trends toward the 2% target.
EUR/USD now faces resistance at 1.1260, with additional levels at 1.1460 and 1.1580. On the downside, initial support is seen at 1.1040, followed by 1.1000 and 1.0960.
