The EUR/USD pair holds steady near 1.1770 during the early Asian session on Tuesday. Traders continue to price in the prospect of further rate cuts by the US Federal Reserve (Fed) in 2026, following the 25-basis-point rate reduction delivered at the December meeting.
💡 DMK Insight
The EUR/USD pair’s stability around 1.1770 signals a cautious market as traders digest potential Fed rate cuts. With the Fed’s recent 25-basis-point cut, expectations for further easing in 2026 are influencing sentiment. This could lead to a weaker USD, making the euro more attractive. Traders should watch for any shifts in economic data or Fed commentary that might alter these expectations. If the pair breaks above 1.1800, it could trigger a bullish momentum, while a drop below 1.1750 might signal a bearish reversal. Keep an eye on upcoming US economic indicators, as they could provide clarity on the Fed’s future moves and impact the pair’s direction significantly.
📮 Takeaway
Watch for EUR/USD to break 1.1800 for bullish signals or drop below 1.1750 for bearish momentum, influenced by upcoming US economic data.






