The euro is navigating a complex landscape of trade tensions fueled by new US tariffs and uncertainties surrounding trade deals, while investors are keenly awaiting upcoming inflation data from key Eurozone economies. Market sentiment is dampened by the trade disputes, adding pressure on the currency.
- The euro hovered below $1.18 amidst new US tariffs.
- Trump warned countries “playing games” with trade deals could face higher duties.
- European Parliament paused progress on a US trade deal.
- Investors are watching German, French, and Spanish inflation data.
- EUR/USD lost recovery momentum, trading near 1.1800.
- Risk sentiment and US Dollar strength are impacting the EUR/USD pair.
- The US President stated that there is no inflation and there is “tremendous growth.”
- The market suggests that the USD doesn’t have a lot of room left on the upside.
The confluence of factors suggests a period of uncertainty for the euro. Trade tensions introduce downside risks, while inflation data will be crucial in shaping the European Central Bank’s monetary policy. The currency’s trajectory will likely be influenced by the interplay between these macroeconomic forces and shifting investor sentiment.