EURUSD Insight

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Key Points
- U.S. President Trump will impose universal tariffs starting from the 4th: 25% on Canada and Mexico, and an additional 10% on China.
- The shock from Chinese AI startup DeepSeek continues.
- Concerns about a German recession deepen. Germany's CPI rose 2.3% year-on-year, showing a slowdown compared to December. ECB policymaker Olli Rehn predicts that inflation will stabilize around the target as expected, and monetary policy is unlikely to be restrictive in the near future.
- The Bank of England will hold its first monetary policy meeting of the year on the 6th, with a 25bp rate cut expected.

Key Economic Events This Week
+ Feb 3: Eurozone January CPI
+ Feb 5: U.S. Department of Labor JOLTS, ADP Non-Farm Employment Change
+ Feb 6: Bank of England Interest Rate Decision
+ Feb 7: U.S. January Non-Farm Payrolls, Unemployment Rate

EUR/USD Chart Analysis
The pair climbed above the 1.05000 level but has since retreated, currently falling to the 1.02000 level. A short-term rebound is expected near the previous low, but if the price continues to decline below the 1.03000 level, further drops toward the parity price around 1.00500 are anticipated.

If the market moves differently from expectations, we will quickly adjust our strategy.

Disclaimer

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