Post #15734

EU-India Trade Deal Fuels The Rotation Trade EUR/USD is pressing into the 1.19s, marking its strongest levels since September 2021 and now leaning against a key technical resistance zone. A clean break opens the door toward 1.20. The move is being driven by broad dollar softness and a major macro tailwind out of Europe — the finalized EU–India trade deal. This agreement links economies representing roughly a quarter of global GDP and two billion people, with the EU expecting exports to India to potentially double by 2032. It’s a structural growth boost at a time when global trade routes are being reshaped by US tariffs and China-related restrictions. On the dollar side, markets are focused on the Fed. Rates are expected to stay on hold, but traders are eyeing future cuts and the possibility of a more dovish leadership shift, which keeps pressure on USD Layer in rising geopolitical and trade tensions — including fresh US tariff threats — and the environment continues to favor non-USD currencies. - Alan