empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
02.01.2025 04:16 PM
Possible prospects for the EUR/USD currency pair in 2025
Open trading account Open demo account

Over the past two years, the EUR/USD currency pair has traded within a wide yet sideways range, balanced on the one hand by high interest rates in both the Eurozone and the U.S., and on the other by the weakness of the American economy and a recession in Europe.

The pair's most notable movements occurred in the last three months of the year, driven by expectations of Donald Trump's victory in the U.S. presidential race. His economic agenda, which includes tax cuts, increased tariffs, and other protectionist measures to support domestic manufacturing, as well as the stabilization and resurgence of inflation, were key factors strengthening the dollar. This process occurred across all major currencies without exception and continued despite two 0.50% rate cuts.

While the U.S. dollar gained fundamental support, the euro lost ground due to a decline in consumer inflation to the European Central Bank's (ECB) target of 2%, and briefly below it in September. By December, inflation in the Eurozone edged up slightly to 2.2%, still below the U.S. figure of 2.7%. Stabilization of inflation slightly above target in continental Europe continues to suggest further ECB monetary easing, unlike the Federal Reserve (Fed), where further rate cuts are increasingly deemed unlikely.

Recent inflation data from Spain, released just before the new year, fueled expectations of continued gradual ECB rate cuts. Spanish consumer prices rose by 2.8% year-over-year in December, compared to 2.4% in November, exceeding the forecast of 2.6%. This is significant, as Spain is the Eurozone's fourth-largest economy.

This trend reinforces the ECB's cautious approach, which included four 0.25% rate cuts in 2024. In 2025, an additional four cuts are projected, bringing the deposit rate to 2%. Meanwhile, the Fed is expected to cut rates only twice by 0.25% throughout the year. With other major Eurozone economies yet to release data due to the holidays, the Spanish report remains the focal point of the post-holiday week. The euro declined by nearly 6% in 2024 under pressure from diverging monetary policies between the Eurozone and U.S. central banks.

While the ECB continues gradual easing, the Fed has revised its rate-cutting forecasts downward, further strengthening the dollar against the euro. Uncertainty surrounding potential policy changes under President-elect Donald Trump adds additional pressure on the euro's outlook.

What Are the Prospects for the Pair This Year?

If current factors affecting the EUR/USD pair persist—continued U.S. inflation growth, a persistent Eurozone recession, and Trump's implementation of his new economic policy—it is highly likely that the pair will drop to parity at 1.0000 or even lower to levels seen in September 2022 or January 2001.

Daily Forecast:

This image is no longer relevant

This image is no longer relevant

EUR/USD:The pair dropped on the last trading day of 2024 to our first target of 1.0345. A breach of this level could push it further down to 1.0250 by the end of this week.

EUR/JPY:The pair remains above the support level of 162.40. Breaking this level could lead to further declines toward 160.65 amid expectations of ECB rate cuts this year and potential rate hikes by the Bank of Japan.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Analytical News
US Market News Digest for April 23 The US market is showing renewed signs of instability. Positive signals about a potential de-escalation in the trade conflict with China are fueling hope, but experts warn against excessive optimism
Ekaterina Kiseleva
12:17 2025-04-23 +02:00
1405
Fundamental analysis
The Likelihood of a Euro Reversal to the South Is Increasing As expected, the ECB cut all key interest rates by a quarter-point, bringing the deposit rate down to 2.25%. At this meeting, no new staff projections were released, and given
Kuvat Raharjo
12:01 2025-04-23 +02:00
1435
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Likelihood of a Euro Reversal to the South Is Increasing

As expected, the ECB cut all key interest rates by a quarter-point, bringing the deposit rate down to 2.25%. At this meeting, no new staff projections were released, and given
Kuvat Raharjo 12:01 2025-04-23 UTC+2

Markets Await a Massive Rally if the U.S. Starts Real Negotiations with China (There is a likelihood of continued growth in #NDX and Ethereum)

A new wave of euphoria has swept through the markets. Many believe it's not a coincidence: take everything away from a person and then provide them with even the smallest
Pati Gani 09:03 2025-04-23 UTC+2

What to Pay Attention to on April 23? A Breakdown of Fundamental Events for Beginners

A considerable number of macroeconomic events are scheduled for Wednesday. All of them are Purchasing Managers' Index (PMI) reports for April in the services and manufacturing sectors. The indices will
Paolo Greco 07:01 2025-04-23 UTC+2

GBP/USD Overview – April 23: The British Pound Can't Stop Smiling

On Tuesday, the GBP/USD currency pair traded much more calmly, yet again showed signs of a "maxed-out flat" pattern. As previously noted, the US dollar has only had two behaviors
Paolo Greco 04:56 2025-04-23 UTC+2

EUR/USD Overview – April 23: Another Calm Before Another Collapse?

The EUR/USD currency pair traded more calmly on Tuesday than on Monday. The US dollar managed to avoid another fall, but it's too early to celebrate. The greenback can collapse
Paolo Greco 04:56 2025-04-23 UTC+2

USD/JPY. On the Threshold of the 139th Figure

The USD/JPY pair has been in a consistent downtrend for the fourth consecutive week. On Tuesday, sellers pushed the pair to the edge of the 139.00 area, hitting the lowest
Irina Manzenko 00:46 2025-04-23 UTC+2

The Dollar Has Been Replaced. Nature Abhors a Vacuum

Fear paralyzes, but action persists. Investors are slowly overcoming their concerns over Donald Trump's attacks on the independence of the Federal Reserve and are starting to lock in profits
Marek Petkovich 00:08 2025-04-23 UTC+2

Bitcoin Took Its Chance

Slow and steady wins the race! Bitcoin quietly broke through to its highest levels since early March amid Donald Trump's attacks on Jerome Powell. When the independence of the Federal
Marek Petkovich 00:08 2025-04-23 UTC+2

XAU/USD. Analysis and Forecast

After setting a new all-time high at $3500 under overbought conditions, gold prices are pulling back. Nevertheless, bullish sentiment remains strong due to persistent concerns over the potential economic fallout
Irina Yanina 19:02 2025-04-22 UTC+2

EUR/GBP. Analysis and Forecast

The EUR/GBP pair is losing ground today after two consecutive days of gains, trading near the psychological level of 0.8600. The pound is receiving support from optimism surrounding ongoing trade
Irina Yanina 11:52 2025-04-22 UTC+2

Top analytics

Relevance up to 02:00 2025-04-24 UTC--4
GBP/USD: Simple Trading Tips for Beginner Traders on April 23. Review of Yesterday's Forex Trades
08:48 2025-04-23
Forecast
Relevance up to 02:00 2025-04-24 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on April 23. Review of Yesterday's Forex Trades
08:48 2025-04-23
Forecast
Relevance up to 06:00 2025-04-24 UTC--4
US Market News Digest for April 23
12:17 2025-04-23
News
Relevance up to 00:00 2025-04-24 UTC--4
How to Trade the EUR/USD Pair on April 23? Simple Tips and Trade Analysis for Beginners
06:45 2025-04-23
Trading plan
Relevance up to 02:00 2025-04-24 UTC--4
Intraday Strategies for Beginner Traders on April 23
08:48 2025-04-23
Forecast
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.