EUR/USD pares losses supported by hopes of a trade deal with the US
The EUR/USD pair is trimming some of Monday's losses on Tuesday, although it maintains the bearish trend from last week's highs intact. Investors are keeping a cautious mood as US President Donald Trump announced new tariffs on a batch of countries, bringing global trade concerns back to the forefront.
The Euro (EUR) bounced up from nearly two-week lows at 1.1690 during Tuesday's Asian session, and is trading at 1.1740 at the time of writing, with upside attempts capped below a previous support area at 1.1750 so far.
The Eurozone was not among the recipients of Trump's tariff letters and will not receive one for the time being, as negotiations with the US are apparently showing progress and, according to market sources, a deal might be announced as soon as Wednesday.
This news has contributed to easing some pressure on the Euro, although upside attempts are likely to remain limited with concerns about global trade weighing on risk appetite. The economic calendar is light this Tuesday, and market concerns about a significant disruption of international trade are likely to support the safe-haven US Dollar to the detriment of riskier currencies, such as the Euro.
On the macroeconomic front, international trade figures from France and Germany have shown mixed figures, but the lower imports and exports ponit to a softer domestic demand and a weakening economic activity.
Source: FXstreet
