The euro is showing resilience, rebounding against the dollar amidst renewed trade tensions between the US and EU. The dollar weakened due to uncertainty surrounding US trade policy, giving the euro a boost. Stronger-than-expected German business sentiment also contributed to the euro’s recovery. Investors are closely watching upcoming inflation data from Germany, France, and Spain to gauge the impact of euro strength on price pressures and the European Central Bank’s future policy decisions.
- The euro climbed back to $1.18 after hitting one-month lows.
- USD weakened due to renewed uncertainty over US trade policy.
- Trump announced plans to raise tariffs after the Supreme Court blocked broader tariff measures.
- EU officials are seeking clarity on US trade plans.
- German business morale hit a six-month high, supporting the euro.
- EUR/USD retreats below 1.1800 as EU-US trade relations sour.
- The US tariff increase was rejected by the European Commission.
- Uncertainty surrounding the US trade regime could allow EUR/USD to extend its rebound.
Overall, the euro is navigating a complex landscape influenced by global trade dynamics and economic data. Trade tensions between the US and EU are creating uncertainty, but positive economic signals from Germany are providing support. The euro’s future performance will likely depend on the resolution of these trade disputes and the upcoming inflation data releases, which will influence the European Central Bank’s policy outlook.