EUR/USD depreciates due to expected widening of interest rate gap between the United States and the Eurozone.
President Trump announced plans to impose a 25% tariff on all steel and aluminum imports without naming the affected countries.
German Chancellor Olaf Scholz warned that the European Union could respond "within an hour" if the US imposes the tariffs.
EUR/USD continues its losing streak for the third consecutive session, trading near 1.0310 during Asian trading hours on Monday. The pair remains under pressure as investors anticipate a widening interest rate gap between the United States (US) and the Eurozone.
The US Federal Reserve (Fed) is now expected to keep interest rates steady this year, following January's jobs report, which indicated slowing job growth but a lower Unemployment Rate. This development supports the US Dollar and weighs on the EUR/USD pair. Meanwhile, the European Central Bank (ECB) recently cut rates and signaled the possibility of further easing in March.
On Friday, data from the US Bureau of Labor Statistics (BLS) showed that Nonfarm Payrolls (NFP) increased by 143,000 in January, significantly below December's revised figure of 307,000 and the market expectation of 170,000. However, the Unemployment Rate declined slightly to 4% in January from 4.1% in December.
Speaking aboard Air Force One, US President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports without specifying the affected countries. Trump also stated that additional reciprocal tariffs would be revealed by midweek, set to take effect almost immediately, matching the tariff rates imposed by each country, according to Reuters.
In response, German Chancellor Olaf Scholz stated on Sunday that the European Union (EU) could react "within an hour" if the US imposes the proposed tariffs. Separately, Bernd Lange, head of the European Parliament's trade committee, suggested that to avoid a trade war, the EU is open to reducing its 10% import tax on vehicles to a rate closer to the 2.5% tariff imposed by the US.
Concerns over potential deflationary pressures due to expected US tariffs have intensified odds of deeper ECB rate cuts, with markets now predicting the deposit rate could fall to 1.87% by December.(Cay) Newsmaker23
Source: Fxstreet
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 ...
EUR/USD registers gains of over 0.20% on Monday amid worries of a possible government shutdown in the US, while data in the Eurozone, showed that sentiment improved but failed to propel the shared cur...
EUR/USD continued its rally for the second consecutive session, trading around 1.1720 during the Asian session on Monday. The pair strengthened as the US dollar (USD) weakened after the August US infl...
EUR/USD is posting moderate gains on Friday, trading near 1.1675 at the time of writing on Friday from 1.1645 daily lows, but remains on track for a 0.55% weekly decline. In the United States (US), a ...
Japanese stocks closed higher on Thursday, following a Wall Street rally driven by renewed buying in AI-related stocks. The Nikkei 225 rose 1.8%, or 845 points, to 48,580.44, signaling investors were more focused on corporate performance prospects...
Gold fell slightly at the start of the Asian session, catching its breath after breaking a new record high above a key psychological level. Several technical indicators pointed to overbought conditions after consecutive rallies, prompting...
Hong Kong stocks weakened on Thursday, signaling sluggish "golden week" holiday shopping in mainland China. The Hang Seng Index fell 1.1% to 26,521.75 as of 9:55 a.m. local time, while Hang Seng Tech shed 0.6%. On the mainland, markets reopened...
Hamas officials were in Egypt on Monday (October 6th) ahead of talks with Israel that the US hopes will lead to an end to the war in Gaza and the...
European stocks moved steadily at the start of the week, while the French CAC 40 index fell 0.7%. This decline occurred after President Emmanuel...
The S&P 500 and Nasdaq Composite closed at record highs on Monday, spurred by optimism about increased mergers and acquisitions activity after...
Euro Area Stock MarketEuropean stocks closed mostly lower on Monday as fresh political turmoil in France rekindled concerns of fiscal instability...