German Economic Sentiment at 38.5 vs Forecast of 41.5; EURUSD Volatile

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Update: Tuesday, 11/11/2025 - 17:06 PM
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The latest German economic sentiment data, which has influenced the EURUSD exchange rate, was released on Tuesday (November 11, 2025).

For this month, the economic sentiment was reported at 38.5, falling short of the forecast from Trading Central at 41.5 and lower than the previous month’s figure of 39.3. Following this release, the EURUSD exhibited volatility, trading near its daily high of 1.15686.

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This data typically cast a negative tone on the EURUSD, but other factors are at play influencing this currency pair, particularly the expectations around a possible interest rate cut by the Federal Reserve.

Last week, data from Challenger Inc. revealed that job cuts reached 150,000 in October, marking the highest number in the past two decades. This development led market participants to perceive a significant chance that the Fed will implement a rate cut in December. Moreover, consumer sentiment in the US this month dropped to 50.3, below the forecast of 53 and last month’s figure of 53.6.

The deteriorating state of the US economy is prompting traders to believe that there is a considerable likelihood the Fed will reduce interest rates in December. This situation is exerting pressure on the US dollar, thereby allowing the EURUSD to maintain an upward trend.

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