EUR/USD plunged more than 1% to near 1.0240 at the start of the week. The major currency pair plunged as US President Donald Trump reiterated his threat to impose tariffs on the European Union (EU). Over the weekend, Donald Trump imposed 25% tariffs on Canada and Mexico and 10% on China. Trump also warned that he would also increase levies on the trading bloc, but he did not provide much information.
"That will definitely happen with the European Union. I can tell you that because they have really taken advantage of us," Trump said. He also accused the old continent of not buying enough US cars and farm products. Trump added that the EU "takes almost nothing and we take everything from them".
Tariffs on the Eurozone would accelerate its problems. The common currency bloc is already facing the risk of a slowdown. Eurozone preliminary gross domestic product (GDP) data for the fourth quarter of 2024 showed that the economy was flat after growing 0.4% in the third quarter. The shrinking German economy remains the weak link in the eurozone's flat GDP growth. German GDP data showed that the economy contracted by 0.2% year-on-year in the final quarter of 2024.
Further signs of weakness in the eurozone economy could force the European Central Bank (ECB) to continue lowering interest rates. The ECB cut its Deposit Facility rate by 25 basis points (bps) to 2.75% on Thursday and signaled that the path of monetary policy is clear: expansionary. Traders have fully priced in three rate cuts and see them coming by the summer as ECB officials are confident that inflation will return sustainably to the desired level of 2% this year.
On Monday, the Harmonized Index of Consumer Prices (HICP) report for January showed that price pressures eased on a monthly basis. The core Consumer Price Index (CPI) – which excludes volatile food and energy prices – deflated by 1% after growing 0.5% in December. In the same period, the headline CPI also deflated by 0.4%. On a year-on-year basis, the headline CPI rose steadily by 2.7%, faster than the estimate of 2.6%. The core CPI is expected to rise by 2.5%, faster than the expectation of 2.4%.
Source: FXstreet
EUR/USD fell from the 1.1650 area to around 1.1625 on Monday (October 27th), but held onto some of its previous gains after touching 1.1580 last week. Market sentiment has improved somewhat due to hop...
EUR/USD attempted to hold the 1.1600 area during Wednesday's Asian session after three days of weakness. The euro's rebound attempt faltered as the US dollar remained strong, supported by easing US-Ch...
The euro continued to decline against the US dollar for the third consecutive day, driven by a strengthening dollar amid hopes that the US government shutdown would soon end. Furthermore, market expec...
EUR/USD is steady late during the North American session as investors digest a soft jobs report and shrugs off the shutdown of the US government. The lack of an agreement between the White House and D...
EUR/USD holds firm on Tuesday during the North American session, although the Dollar weakens due to fears of a possible government shutdown that could disrupt the release of crucial jobs data for Fed ...
Many people in China cheered the meeting Thursday between President Xi Jinping and U.S. President Donald Trump, after months of escalating bilateral tensions. Every time the two leaders meet, it helps ease tensions and creates a "positive...
Gold price rallies over than 1.50% on Thursday after the Federal Reserve (Fed) reduced rates as expected despite Chair Jerome Powell's hawkish comments at the press conference. Falling US Treasury yields and geopolitics boosted the yellow metal,...
Both the STOXX 50 and STOXX 600 closed 0.2% lower on Thursday as investors weighed central bank actions, corporate earnings, and mixed economic data. The ECB kept rates unchanged for a third consecutive meeting, noting that the inflation outlook...
Asian stock markets opened higher on Wednesday (October 29th), buoyed by positive sentiment from Wall Street. Investors are confident that the...
European stocks weakened slightly on Wednesday (October 29, 2025), after several consecutive days of record highs. The STOXX 600 index fell by...
The European session on Tuesday, October 28, 2025, opened on a more cautious note. After consecutive rallies and a new record on the STOXX 600...
The United States (US) Federal Reserve (Fed) will announce its interest rate decision and publish the Monetary Policy Statement following the...