EUR/USD Holds Positive Ground Near 1.0450, FOMC Minutes In Focus
The EUR/USD pair posted modest gains to around 1.0450 during the Asian trading hours on Wednesday (2/19), supported by a weaker US Dollar (USD). However, tariff concerns and tense Russia-Ukraine negotiations could boost the safe-haven Greenback and limit the major’s gains
US President Donald Trump said late Tuesday that he is likely to impose tariffs on imports of cars, semiconductors and pharmaceuticals of around 25%, with an announcement to be made as early as April 2.
Ukrainian President Volodymyr Zelenskiy said no peace deal can be made for now. He postponed his planned visit to Saudi Arabia on Wednesday until March 10 to avoid lending “legitimacy” to the US-Russia talks. Uncertainty, geopolitical tensions and tariff threats could lift the USD and act as a tailwind for the currency pair.
Investors await the release of the FOMC Minutes for its January meeting, due on Wednesday. The report could provide some clues on how policymakers are weighing the risks of a global trade war.
Across the pond, the Eurozone ZEW Economic Sentiment Index came in at 24.2 in February compared to 18.0 previously, which missed estimates. Growing speculation that the European Central Bank (ECB) will cut interest rates three times this year could weigh on the euro (EUR).
Source: FXStreet
