EUR/USD: Consolidation is likely in near term – OCBC

FXStreet Insights Team FXStreet

Euro (EUR) traded under pressure amid broad US Dollar (USD) strength on tariff threats. Yesterday at the last GC meeting, ECB lowered policy rates for the 5 the consecutive meeting by 25bp. Pair was last at 1.0370 levels, OCBC's FX Frances Cheung and Christopher Wong analysts note.

Near term risks for EUR skewed to the downside

"Deposit rate now stands at 2.75%. Decision was unanimous and the Council did not discuss the possibility of a larger cut. Lagarde said that rates remain in restrictive territory, and it is premature to discuss when ECB should stop cutting rates. According to a Reuters report, 3 ECB policymakers commented that they thought a further rate cut was likely to go through in March meeting without much resistance before debate within the Governing Council on further easing becomes more heated."

"On tariff implications, Lagarde said that tariffs would have a 'global negative impact' on growth but their potential effect on inflation was 'far more complicated' due to possible retaliation and market adjustment. Recall earlier this week, FT reported that US Treasury secretary Scott Bessent favors universal tariffs on US imports, starting at 2.5% while Trump said he wants tariffs ‘much bigger’ than 2.5%."

"Near term risks for EUR skewed to the downside on tariff threats and EU growth concerns (a risk that ECB may need to cut deeper). Bullish momentum on daily chart shows signs of fading but decline in RSI moderates. Consolidation likely. Support at 1.0360 (21 DMA) and 1.0240 levels. Resistance at 1.0420/30 levels (23.6% fibo retracement of Sep high to Jan low, 50 DMA), 1.0520 levels."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.