Fundamental Market Analysis for January 24, 2025 EURUSD

EUR/USD is attracting buyers towards 1.04500 in the early Asian session on Friday, fuelled by a weaker US Dollar (USD). Later on Friday, preliminary Purchasing Managers' Index (PMI) data for January in the Eurozone and Germany will be released. In the US, the flash S&P PMI for January will take centre stage.

U.S. President Donald Trump's remarks at the World Economic Forum in Davos led to a decline in the U.S. dollar against a basket of major currencies. Late on Thursday, Trump said he wants to see interest rates cut immediately and accordingly they should fall across the board.

‘The markets seem to be more concerned about lower rates and any indication that they're going to be cut’, said David Eng, an investment adviser at Sonora Wealth Group in Vancouver.

Meanwhile, ECB President Christine Lagarde emphasised on Wednesday that the central bank is ‘not too concerned’ about the risk of inflation from abroad and will continue to cut interest rates at a gradual pace. Markets have priced in a nearly 96% probability that the ECB will cut rates at its upcoming meeting.

Trading recommendation: Trade predominantly with Buy orders from the current price level.