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 weakened slightly as markets again doubted the chances of aggressive Fed easing. Powell's cautious comments prompted investors to seek refuge in the dollar, especially as global risk sentiment...
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...
Federal Reserve Bank of Dallas President Lorie Logan said she does not support the U.S. central bank's decision to cut interest rates this week and will likely consider it appropriate to keep rates unchanged at its next meeting because inflation...
Oil prices headed for a third straight monthly decline, falling on Friday (October 31st) due to a stronger US dollar, weak Chinese data, and rising supply from major global producers. Brent crude futures fell 38 cents, or 0.6%, to $64.62 a barrel...
Gold held steady near $4,000 an ounce, as traders weighed a US-China trade truce that failed to quell concerns about a long-term rivalry between the world's two largest economies. Spot gold pared losses after falling as much as 0.9% an ounce on...
The United States (US) Federal Reserve (Fed) will announce its interest rate decision and publish the Monetary Policy Statement following the...
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...
European stocks closed slightly lower on Tuesday after reaching record peaks on the previous session on mixed earnings results, while markets...