EUR/USD corrected near 1.0860 during European trading hours on Thursday (3/13). The major currency pair fell as the Euro (EUR) faced slight pressure on a new escalation in a potential tariff war between the European Union (EU) and the United States (US).
On Wednesday, US President Donald Trump said that he would respond to the EU's proposed retaliatory tariffs on 26 billion Euros worth of US goods. Trump's comments came just before a meeting with Irish Prime Minister Micheál Martin, after which he said that "there is a big deficit that we have with Ireland and with other countries" and added that he would impose reciprocal tariffs on them for taking advantage of the US.
During European trading hours on Wednesday, European Commission (EC) President Ursula von der Leyen unveiled 'prompt and proportionate retaliatory measures' on US imports in the EU in response to the steel tariffs. Trump announced 25% tariffs on steel and aluminum imports, which came into effect on Thursday.
The trade war between the continent and the US will have a major impact on the German economy, given that the country is the Eurozone's largest exporter to the US. In European trading hours on Thursday, European Central Bank (ECB) policymaker and Bundesbank President Joachim Nagel warned that US trade tariffs against the European Union (EU) could push "Germany into recession this year" in an interview with BBC News.
Meanwhile, trading was also cautious ahead of a meeting of German leaders to discuss debt restructuring to boost defense spending and stimulate economic growth. Germany's debt reform is expected to be approved in the lower house of Parliament on Tuesday as the German Green Party led by Franziska Brantner agreed to negotiate with the next Chancellor candidate Friedrich Merz and Social Democratic Party (SDP) co-leader Lars Klingbei.
The euro has outperformed lately as investors expect Germany's debt restructuring plan to be inflationary for the economy. Such a scenario would force traders to scale back dovish bets on the European Central Bank (ECB). (Newsmaker23)
Source: FXstreet
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which ...
EUR/USD loses ground for the sixth consecutive day on Wednesday, trading below 1.1730 after peaking above 1.1800 last week. The pair struggles amid a moderate US Dollar (USD) rebound following the rel...
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th. ...
The euro rebounded above $1.16, reaching its strongest level since mid-November, as investors adopted a cautious stance ahead of key Eurozone and US economic data that could influence interest rate ex...
The EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as exp...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...