EUR/USD holds losses near 1.1550 ahead of German ZEW Survey data

• EUR/USD depreciated as the US Dollar gained on hopes of ending the US government shutdown.
• US Senate passes funding bill 60–40 to end 41-day shutdown; measure now moves to House for approval.
• The Euro could find support from the European Central Bank’s cautious stance on its policy outlook.

EUR/USD edges lower after four days of gains, trading around 1.1560 during the Asian hours on Tuesday. The pair holds losses as the US Dollar (USD) gains support amid growing hopes that the US government shutdown resolution is nearing. The US Senate passed a funding bill in a 60–40 vote, effectively ending the 41-day shutdown, with eight Democrats joining Republicans to advance the measure, which now moves to the House for approval.

US President Donald Trump, on Monday, backed a bipartisan deal to end the US government shutdown, signaling a likely reopening within days. Senate Majority Leader John Thune said he expects Trump to sign the bill once Congress passes it.

However, the Greenback faced challenges amid growing economic uncertainty in the United States (US), which fueled expectations for a near-term Federal Reserve rate cut. The CME FedWatch Tool shows markets pricing in a 62% chance of a 25 bps rate cut in December.

Fed Governor Stephen Miran told CNBC on Monday that inflation is easing and has reaffirmed that staying on course with rate cuts is appropriate, suggesting a 50-basis-point reduction in December, or at least 25 bps. Miran added that the economy is not at maximum employment and that all data since September support further easing.

The EUR/USD pair may regain its ground as the Euro (EUR) could receive support from the cautious tone surrounding the European Central Bank (ECB) policy outlook. Traders await Germany’s ZEW Survey data due later in the day.

Traders anticipate the ECB will keep interest rates unchanged for now, backed by steady economic performance and inflation near target. Money markets see only a 40% chance of a rate cut by September 2026.

ECB Vice President Luis de Guindos said Monday that current policy rates are appropriate, emphasizing the need for the bank to stay “very prudent and cautious,” despite reduced uncertainty following a recent US-EU trade deal.