EUR/USD Strengthens As Investors Shrug Off Trump’s Tariff Plans
EUR/USD rose to near 1.0500 during North American trading hours on Tuesday (25/2). The major currency pair strengthened as the US dollar weakened despite fresh fears of a global trade war. The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell to near 106.45.
On Monday, US President Donald Trump said that his plan to impose 25% tariffs on Canada and Mexico on March 4, which was postponed a month after the two countries agreed to tighten border activities, is still on track. “The tariffs will be implemented on time, on schedule,” Trump said from the White House. Fresh fears of Donald Trump’s tariffs on his North American partners have brought stability to the US Dollar (USD). The USD index recovered from an 11-week low of 106.10 to near 106.70.
On the economic front, the US Durable Goods Orders and Personal Consumption Expenditures (PCE) Price Index for January will be the next major triggers for the US Dollar, due on Thursday and Friday, respectively. Investors will be keeping an eye on the PCE inflation data, the Federal Reserve’s (Fed) preferred inflation gauge, as several officials have expressed concerns over the slowing deflationary trend of late.
On Tuesday, investors will focus on the US Consumer Confidence data for February, due at 15:00 GMT.
Source: FXStreet
