The EUR/USD closed at 1.16624 at 3:00 pm EDT. It was trading around 1.15746 this morning at about 4:00 am. Because there were no major economic data releases today, traders had more time to lament the downward revision of 258,000 jobs in May and June, the potential pullback in consumer spending as a result of the revisions, and the casting of doubt on the quality of data regarding the economy that is published by the government.
Analysis by FXStreet saw risk on for the EUR/USD. Today’s increase in dollar weakness (87 pips worth) indicated to some analysts that it was difficult today for the US dollar to find a little love. Earlier this morning, Reuters saw the dollar stuck in a trading range as traders waited for President Trump to produce a short list of nominees to replace Jerome Powell as chairman of the Federal Reserve Board and to fill the unexpired term of Adriana Kugler followed by renomination for a full 14-year term.
Reuters also pointed out the negative effect from disconnecting Fed policy from the quality of data out of the government agencies responsible for taking the nation’s economic pulse. Mr. Trump’s dumping of the head of the U.S. Bureau of Labor Statistics has brought data quality to the front burner. The quality of data has always been a topic left on warm. Mr. Trump’s actions have brought quality of data to the front burner with some extra oil spilling on the burners for good measure.
The European Union’s economy hasn’t exactly been chugging along on all cylinders. Reuters reported that the HCOB Purchasing Managers Index, while providing a positive data point on growth in Europe, reflected sluggish growth in the Old World economy. Stagnant demand is reportedly holding back output.
And if anyone shorted the euro today via the EUR/USD, they paid the price. Mr. Trump’s firing of the BLS director was likely more optics for his MAGA base, a way of clearing the swamp of any personnel that prove an impediment to the President’s economic agenda.
In conjunction with Federal Reserve Bank of Minneapolis’ president Neel Kashkari’s observation that the Federal Open Market Committee may need to cut rates in the near term, Mr. Trump’s executive actions may be moving his policy closer to its goal of weakening the dollar and adding some air under the wings of the EUR/USD.
Alton Drew
6 August 2025
For a legal analysis of the events discussed in this post, reach out to at altondrew@altondrew.com.
DISCLAIMER: This post is for informational purposes only. It is not offered as legal or trading advice. Trading is risky. Before embarking on your trading journey, consult a professional trading advisor.
Lawyers Write the Bets. Bankers Sell the Bets. 