EUR/USD Bucks Bearish Tide, But Tariffs And Fed Warnings Remain
EUR/USD staged a mild bullish recovery on Tuesday, snapping a two-day losing streak and posting some last-minute gains before the Trump administration’s sweeping “reciprocal” tariffs take effect on April 9. Fed speeches from key policymakers have begun to clash with rising market expectations for the Fed to cut interest rates through the remainder of 2025, putting markets on a collision course with the negative impact of broad tariffs.
Overall, the European economic data calendar is quiet this week, and Tuesday provided a refreshing break from the usual barrage of geopolitical and trade news in recent weeks under the Trump administration. However, several key Federal Reserve (Fed) officials took the opportunity to remind us that uncertainty and the adverse inflationary impact of US tariffs will complicate, not facilitate, the Fed’s rate-cutting process.
Source: FXStreet
