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EUR/USD slumps to 1.0200 neighborhood, multi-week low on Trump's trade tariffs
Monday, 3 February 2025 08:05 WIB | EUR/USD |EuroDolar

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.

Spot prices have now moved back closer to over a two-year low touched in January and seem vulnerable to prolonging a multi-month-old downtrend.

The US Dollar (USD) surges across the board in reaction to US President Donald Trump's decision over the weekend to impose 25% duties against Canada and Mexico, and an additional 10% duty on China.

This marks the start of a new global trade war and tempers investors' appetite for riskier assets. The anti-risk flow provides a goodish lift to the safe-haven buck, which turns out to be a key factor that exerts downward pressure on the EUR/USD pair.

Source: FXStreet

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