The EUR/USD pair fell to around 1.0380 in early Asian trading on Tuesday. President-elect Donald Trump denied plans to scale back his aggressive tariff policy, bolstering the US Dollar. Stronger-than-expected Eurozone PMI and German CPI data for December tempered expectations for ECB easing, but political instability in Europe and the potential for a US trade war could weigh on the Euro.
EUR/USD drifts lower to around 1.0380 in Tuesday’s early Asian session. Trump denied he will pare back his aggressive tariffs plan. Markets trim the ECB easing bets after the stronger Eurozone PMI and German CPI data for December. The EUR/USD pair softens to near 1.0380 on Tuesday during the Asian trading hours. The Greenback edges higher after President-elect Donald Trump said that his tariff policy won't be pared back.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year.
EUR/USD Trump Tariffs ECB Eurozone PMI German CPI
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