Trump's Tariffs Still Unclear, EUR/USD Remains Steady
The EUR/USD pair moved flat around 1.1800 in early European trading on Friday, as market participants held positions ahead of the release of the US Producer Price Index (PPI). The euro's relatively subdued movement was influenced by two offsetting sentiments: weakening Eurozone inflation and continued uncertainty regarding US tariff policy.
In the US, market focus is on the January 2026 PPI, scheduled for release on February 27, 2026, at 8:30 a.m. ET (BLS). This data is often read as an indicator of producer price pressures and can influence expectations regarding the Fed's interest rate path.
On the trade front, volatility remains high following a US Supreme Court ruling limiting the use of emergency tariff powers, while the Trump administration is moving forward with new schemes, including the idea of increasing global tariffs by up to 15% within a specific timeframe. The European Union even delayed the process of agreeing to a trade deal with the US due to a need for clarity on tariffs, confirming that policy uncertainty remains a key theme weighing on the dollar and encouraging market caution.
In Europe, Eurozone inflation fell to 1.7% in January 2026 (the lowest in about 16 months), with core inflation also weakening to 2.2% year-on-year. These figures reinforce speculation that the ECB could shift to a more dovish stance, causing the euro to lose some steam. The market now awaits Germany's preliminary CPI data for further guidance before determining the next move for EUR/USD. (asd)
Source: Newsmaker.id
