The EUR/USD pair plunges to a three-week low near 1.0200 as a surge in USD demand, fueled by Trump's tariffs on Canada, Mexico, and China, overshadows the divergent ECB-Fed outlook. The trade war fears and the ECB's dovish stance contribute to the downward pressure on the euro.
EUR/USD kicks off the new week on a bearish note amid resurgent USD demand. Trump imposed tariffs on Canada, Mexico, and China, boosting the safe-haven buck. The divergent ECB-Fed outlook also contributes to the downfall and favors bears. The EUR/USD pair attracts heavy follow-through selling on Monday and dives to the 1.0200 neighborhood, or a three-week low during the early Asian session.
Nevertheless, the fundamental backdrop suggests that the path of least resistance for spot prices is to the downside. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported.
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