Fundamental Market Analysis for May 23, 2025 EURUSD
Event to pay attention today:
17:00 EET. USD- Volume of home sales on the primary market
EURUSD:
EUR/USD is recovering its recent losses from the previous session and is trading around 1.1310 during Asian hours on Friday. The pair is rising on the back of lower US Treasury yields, which continue to decline after the US 30-year bond yield retreated from 5.15 per cent, the highest in 19 months.
US President Donald Trump's ‘One Big Beautiful Bill’ has passed the House of Representatives and is on its way to the Senate, sparking fears of a widening budget deficit in the United States (US).
However, EUR/USD lost around 0.50 per cent on Thursday as the US dollar gained as the S&P Global Composite Purchasing Managers' Index (PMI) for May came in at 52.1, up from April's 50.6. Meanwhile, the manufacturing PMI rose to 52.3 from 50.2 previously, while the services PMI rose to 52.3 from 50.8.
Fed Chairman Christopher Waller noted on Thursday that markets are watching fiscal policy. Waller also said that if rates are close to 10%, the economy will be in good shape for H2 and the Fed may be in a position to cut rates later this year.
The Financial Times reported that President Trump is pushing the European Union (EU) to cut tariffs or impose more duties. US Trade Representative Greer is set to tell fellow EU Commissioner for Trade and Economic Security, Maroš Šefčovič, that the recent ‘explanatory memorandum’ does not meet US expectations.
Trading recommendation: BUY 1.13200, SL 1.13000, TP 1.14200
source https://www.tradingview.com/chart/EURUSD/Zsg2q1x7-Fundamental-Market-Analysis-for-May-23-2025-EURUSD/
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