EUR/USD holds previous gains as trade fears weigh on the US Dollar
EUR/USD stands comfortably above 1.1600, trading at 1.1615 at the time of writing on Monday, as the latest trade rift between the US and China has hurt the US Dollar, and the US federal government remains closed with little prospects of an upcoming solution.
The US Dollar dropped on Friday after US President Donald Trump threatened 100% tariffs on Chinese imports to begin on November 1, after the Asian country announced curbs on rare earths' exports. Trump, however, softened his tone on social media on Sunday, suggesting that the additional levies will not come into effect, which has calmed fears somewhat.
Meanwhile, in Europe, the focus remains in France, where President Emmanuel Macron reappointed Sébastien Lecornu as Prime Minister, one week after his resignation. Lecornu has named Macron's close ally, Roland Lescure, as Finance Minister, who will have the challenging task of passing a belt-tightening budget through the parliament.
Trading volumes might be somewhat lower on Monday as the US markets are closed for the Columbus Day holiday. In the economic calendar, a slew of central banks' policymakers, including European Central Bank (ECB) President Christine Lagarde, will provide the fundamental guidance.
Source : Fxstreet.com