Fundamental Market Analysis for June 10, 2025 EURUSD

An Event to pay attention today:

13:00 EET. USD - NFIB Small Business Optimism Index

EURUSD:

The EUR/USD pair is struggling to capitalise on the previous day's gains and is attracting new sellers around 1.1435 during Tuesday's Asian session. The intraday decline is driven by solid demand for the US dollar (USD) and has pushed spot prices below 1.1400 in the last hour.

Friday's US non-farm payrolls (NFP) report, which showed higher-than-expected data, dampened hopes for an early interest rate cut by the Federal Reserve (Fed) this year. This, along with optimism about the resumption of trade talks between the US and China, is prompting traders to ease their bearish bets on the US dollar, which is proving to be a key factor putting pressure on the EUR/USD pair. However, as negotiations continued into a second day in London, traders may refrain from aggressive directional bets.

In addition, traders still see a rate cut by the US central bank in September as more likely. This, along with concerns about the financial health of the US government, may limit further strengthening of the US dollar and provide support for the EUR/USD pair. In contrast, the European Central Bank (ECB) hinted at the end of its rate-cutting cycle at its meeting last week. This could further benefit the single currency and help limit losses for the currency pair.

Traders may also refrain from aggressive betting ahead of this week's US inflation data release.

Trading recommendation: SELL 1.1390, SL 1.1410, TP 1.1300