EUR/USD news for August 25, 2026
The dollar slipped to its lowest since May, partly as the Treasury doubled its bond buyback plans, while the euro drew support from a stronger German Ifo business climate reading. Market focus now turns to the upcoming U.S. core PCE price index, which will offer fresh clues on the Fed's policy path amid mixed signals from officials on potential rate moves.
How the day unfolded
The euro has climbed to its highest level against the dollar since May, as the U.S. dollar softens broadly amid renewed 'Sell America' sentiment and Treasury bond buyback plans. Technical positioning shows EURUSD testing its rising 100-hour moving average, with forecasters highlighting a broken trendline that suggests further upside for the pair. Market focus remains on upcoming U.S. core PCE data and Federal Reserve policy expectations, which are seen as key drivers for near-term currency moves.
The euro strengthened to its highest level against the dollar since May, driven by broad dollar weakness as the Treasury announced it would double bond buybacks and the 'sell America' trade returned. Softness in the greenback is underpinned by expectations that the Federal Reserve will remain on hold, with markets awaiting the U.S. core PCE inflation report for further direction. The pair is currently testing a rising 100-hour moving average, while analysts point to a broken trendline as a technical focus.
EURUSD is trading near its highest level since May, supported by stronger-than-forecast German GDP data and a softer dollar, which slipped to its lowest since May amid Treasury bond buybacks. Technical reports highlight the pair testing its 100-hour moving average and a broken trendline, while market attention turns to the upcoming U.S. core PCE inflation print and expectations that the Federal Reserve will remain on hold.
EURUSD has climbed to its highest level since May, buoyed by a weaker dollar and stronger-than-expected German economic data, including a GDP beat and a jump in the Ifo business climate. The dollar's slide followed the Treasury's decision to double its bond buyback program. Markets now await the upcoming U.S. Core PCE inflation release, with forecasters still expecting the Fed to hold rates this year.
The euro trades at its strongest level against the dollar since May, as the greenback slips on the Treasury's plan to double bond buybacks. A jump in Germany's Ifo business climate adds support to the euro, while markets await the U.S. Core PCE price index for potential policy cues, with forecasters still seeing the Fed on hold this year.
EUR/USD is trading at its highest level since May, helped by a weaker dollar after the Treasury announced a doubling of bond buybacks and by strong German Ifo data. The pair is now testing the rising 100-hour moving average and a swing area, with the market's focus turning to the upcoming U.S. core PCE price index. Risks around wider tariffs and a chip selloff, along with expectations that the Fed stays on hold, are also in the background.
EUR/USD has reached its highest level since May as the dollar slipped following the Treasury's decision to double bond buybacks. The euro also drew support from a jump in Germany's Ifo business climate, indicating a broader recovery. Attention now turns to the U.S. core PCE price index, with forecasters seeing the Fed on hold this year.
Headlines (13)
- Analysts’ views: forecasters continue to see Fed and Bank of England on hold this yearwww.ft.com · Aug 24, 04:51 UTC
- Euro-to-Dollar Week Ahead Forecast: Broken Trendline Points Higher After a Pausewww.poundsterlinglive.com · Aug 24, 05:29 UTC
- FX Daily: Dollar soft, US policy in spotlightthink.ing.com · Aug 24, 06:56 UTC
- US Dollar at Crossroads as 'Sell America' Returns. Forecast as of 24.08.2026www.litefinance.org · Aug 24, 07:05 UTC
- EUR/USD at Highest Level Since May: What Comes Next?www.investing.com · Aug 24, 09:54 UTC
- EURUSD is testing the rising 100 hour MA/swing areainvestinglive.com · Aug 24, 18:45 UTC
- Dollar slips to lowest since May as Treasury doubles bond buybacks, what's next?investinglive.com · Aug 24, 22:05 UTC
- Event Guide: U.S. Core PCE Price Index (July 2026)www.babypips.com · 01:28 UTC
- German GDP beats forecasts as exports drive second-quarter growthwww.investing.com · 06:36 UTC
- Market Quick Take - Wider tariffs and another chip selloff as gold extends its run - 25 August 2026www.home.saxo · 06:49 UTC
- Germany Ifo Business Climate Jumps as Recovery Broadens Across Sectorswww.actionforex.com · 08:42 UTC
- Fed’s Susan Collins Backs Rate Hike If Higher Inflation Persistscoingape.com · 21:17 UTC
- PCE price index preview & EUR/USD technical analysiswww.marketpulse.com · 22:25 UTC
Scheduled events
As of 23:05 UTC
- 2026-08-25 — German Final GDP q/q · forecast 0.2% · EUR
- 2026-08-25 — German ifo Business Climate · forecast 87.2 · EUR
- 2026-08-25 — ADP Weekly Employment Change · USD
- 2026-08-25 — HPI m/m · forecast 0.2% · USD
- 2026-08-25 — S&P/CS Composite-20 HPI y/y · forecast 1.8% · USD
- 2026-08-25 — Belgian NBB Business Climate · forecast -11.0 · EUR
- 2026-08-25 — CB Consumer Confidence · forecast 90.3 · USD
- 2026-08-25 — Richmond Manufacturing Index · forecast 6 · USD
Not investment advice. For informational purposes only.