EUR/USD Weakens Amid Renewed US Dollar Demand
The EUR/USD pair attracted some sellers around 1.1355 during the early Asian session on Wednesday, pressured by renewed US Dollar (USD) demand. The greenback recovered after US President Donald Trump said he has no intention of firing Federal Reserve (Fed) Chairman Jerome Powell despite his frustration with the central bank not moving faster to cut interest rates.
The White House said on Tuesday that the Trump administration is making progress in negotiating a trade deal aimed at rolling back the massive tariffs he announced earlier this month. US Press Secretary Karoline Leavitt said that 18 different countries have made trade offers to the US and that Trump’s trade team met with 34 countries this week to discuss a possible agreement. Positive developments surrounding US trade talks with trading partners lifted the USD and acted as a headwind for the major currency pair.
Additionally, hawkish comments from Fed officials contributed to the greenback’s rise. Fed Board Governor Adriana Kugler said late Tuesday that with much larger-than-expected U.S. import tariffs likely putting upward pressure on prices, the U.S. central bank should keep short-term borrowing costs steady until inflation risks recede.
Source: FXStreet
