- EUR/USD aims to regain 1.1000 because the US dollar is weakened due to expectations that the FED will reduce interest rates in June.
- Trump threatened to apply 50% more tariffs to China because of taking measures against mutual taxes announced last week.
- Investors are waiting for the meeting of the Euro Region Finance Ministers to discuss measures for Trump’s tariffs.
EUR/USD Tuesday’s North American trade session is trying to take back 1,0950 progress and 1.1000 psychological figures. The US Dollar (USD), US (USA) President Donald Trump last week after the mutual tariff announcement after the major currency pair under pressure. . US Dollar Index Slides close to 103.00, following the value of Greenback against six main currencies.
US President Trump swept new taxes in addition to the 10% universal base line on Wednesday to correct trade imbalances and ‘make America wonder again’. Financial market participants expect that these new Trump tariffs and US trade partners can lead to economic recession. Trump on Monday was announced last Friday and threatened to increase the import tax in China by 50% if 34% mutual tariffs did not withdraw the retaliation response to US goods on this Thursday.
In the early hours of the day, the Chinese Commercial Ministry spokesman warned that the US president’s new tariff threats were “an error above a mistake” and “fight to the end” to protect China’s attention.
This also led traders to raise bets that support reducing interest rates. Federal reserve (Fed) at the June Policy Meeting. According to the CME Fedwatch vehicle, the merchants are sure that the Central Bank will reduce the basic borrowing rates in June.
In the future, investors will focus on the USA Consumer Price Index (CPI) and Producer Price Index (PPI) data will be released on Thursday and Friday, respectively.
Daily Digest market carriers: EUR/USD, gains in the middle of weakness in the US dollar
- EUR/USD earns at the expense of US dollar (USD). Meanwhile, appearance Euro (EUR) is also uncertain, investors are worried that Donald Trump’s measures against the European Union (EU) in the face of mutual tariffs can lead to a trade war between the regions on the opposite side of the Atlantic.
- The financial ministers of all Euro zone countries are planned to gather in Warsaw on Friday to discuss the possible results of the tariffs brought by the United States. Before the meeting, Polish Finance Minister Andrzej Domański said, “It broke the supply chains and increasing costs for companies will affect European growth rates and currencies,” he said. Reuters added that such a scenario will be “negative social results” and ılar increasing prices for consumers ”.
- On Monday, the European Union Trade Commissioner Maroš šefčovič also stated that our continent offered the US to “zero zero tariffs için for“ cars and all industrial goods ”. Investors saw the positive expression for the euro as prosperous for the euro region as a cooperative agreement.
- In addition, the increasing European Central Bank (ECB) Dovish bets on the Euro. Bank of Italy Governor Piero Cipollone, French Governor François Villeoy de Galhau and Greek Bank Governor Yannis Stauras, including some ECB officials supported more policy facilitation. Stourtaras said last week that the US tariffs would not be an obstacle to the April ratio deduction ”because the US tariffs remained“ unchanged ”. In the first year, the US tariffs EURO Area Gross will have a “0.3%-0.4%” adversely affect the growth rate in the first year.
- During European trading hours, Stournaras said that monetary policy should be “less restrictive in 2025”. However, he warned the possibility that the inflation increase may “delay the normalization of monetary policy”.
Technical Analysis: EUR/USD aims to reclaim 1.1000
EUR/USD is trying to break over 1.1000 at North American trading hours on Tuesday. The big currency pair returned to the 10 -day exponential moving average (EMA) on Monday, which was traded around 1,0883.
The 14 -day relative force index (RSI) has a level of 60.00, which indicates that the rise momentum is intact.
When we look down, the highest level of March 31 will act as the main support zone for 1,0850 pairs. On the contrary, the highest level of September 25 will be a lock for 1,1214 euro Bulls.
Economic indicator
Consumer Price Index (YOY)
Inflationist or deflationist trends are measured by periodically collection of the prices of a representative goods and service baskets and presented as consumer price index (CPI). CPI data is compiled monthly and US Department of Labor Statistics. Yoy reading compares the prices of goods in the reference month with the same month of the previous year. In general, a high reading is seen as an increase for US dollar (USD), while a low reading is seen as a decrease.
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