EUR/USD Turns Positive As Investors Digest Trump's Latest Tariff Threats
The EUR/USD pair bounced up from lows in the early European session on Monday, and is trading higher for the first time in the past four trading days. The pair, however, maintains its broader bearish trend intact as the 30% levies on all European Union (EU) products announced by US President Donald Trump over the weekend keep risk appetite subdued.
The Euro (EUR) bounced up from fresh three-week lows at the 1.1655 earlier on Monday, but it remains capped between the 1.1700 round level. Looking at the trend since the beginning of the month, the pair has been trading within a bearish channel since peaking at a nearly four-year high at 1.1830 on July 1.
Markets have opened with a mild risk-off tone on the back of Trump's new round of tariffs, but the reaction so far has been more contained than that of April 2 Liberation Day. Traders seem to have assumed this new threat as a negotiating scheme rather than a final statement.
EU officials maintain their positive approach regarding the ongoing trade talks with Washington and remain hopeful of reaching a deal before the August deadline. The European Union has delayed any retaliatory tariffs, and EU Trade Commissioner, Maros Sefkovic, reiterated that an agreement with the US is imminent, which has provided some support to the Euro.
The economic calendar is practically void on Monday with news from the Eurogroup meeting and European Central Bank's (ECB) Cipollone speech, due in the European afternoon, likely to guide the Euro. In the US, the focus will be on Tuesday's Consumer Price Index (CPI) data from June, which might give further clues on the Federal Reserve's (Fed) easing calendar.
Source: FXStreet
