EUR/USD ticks higher as trade war fears weigh on US Dollar
EUR/USD is trading higher for the third consecutive day on Thursday and changes hands at one-week highs beyond 1.1650 at the time of writing. Investors' concerns about the escalating trade tensions between the US and China and the lack of progress in the US federal government's shutdown are eroding confidence in the US Dollar.
US President Donald Trump failed to calm markets on Wednesday, affirming in a TV interview that the US is already in a trade war with China, although his Treasury Secretary, Scott Bessent, tried to tone down the White House's rhetoric and said that an extension of the trade truce is still possible.
The Federal Reserve's (Fed) Beige Book, released on Wednesday, echoed Chairman Jerome Powell's comments from the day before and highlighted the slow employment creation as businesses face headwinds from trade tariffs. These conclusions strengthen the case for further interest rate cuts in the coming months and increase pressure on the US Dollar.
In the economic calendar, the Eurozone Trade Balance might provide some fundamental guidance to the Euro before European Central Bank (ECB) President Christine Lagarde's speech. In the US session, the Philadelphia Fed Manufacturing Survey will be one of the few economic indicators released this week, ahead of a string of speeches from Fed policymakers.
Source : Fxstreet.com
