Eur/Usd Weakens Near 1.0300 Ahead Of Ecb’s Lagarde Speech
The EUR/USD pair moved lower to around 1.0310 during the Asian session on Monday (10/2), pressured by a stronger greenback. Later on Monday, the Eurozone Sentix Investor Confidence for February and a speech by ECB President Christine Lagarde will be in focus.
Trump said on Friday that he plans to announce reciprocal tariffs on many countries on Tuesday or Wednesday, without specifying which ones. The move added to jitters over the global trade war, which has supported safe-haven currencies such as the US dollar (USD).
“However, the immediate concern may not be inflation, as there could be countervailing effects such as slowing demand. The bigger concern is uncertainty and a shift towards a more protectionist world,” said Charu Chanana, chief investment strategist at Saxo.
Across the pond, growing speculation about further interest rate cuts from the European Central Bank (ECB) amid weak economic growth is likely to weigh on the euro (EUR) against the USD. ECB Governing Council member Boris Vujcic said expectations for three more rate cuts this year are reasonable, although it will take until early Q2 to know for sure whether they will materialize, according to Governing Council member Boris Vujcic.
Traders will be watching developments surrounding US President Donald Trump’s tariff policies, as he has repeatedly threatened to do so against Europe. JPMorgan economist Nora Szentivanyi said “the motivation, objectives, timing and extent of the tariffs are all unclear.” However, the European Commission noted that it would retaliate “firmly” against any US tariffs.
Source: FXStreet
