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EUR/USD Surges As Trade Turmoil Weighs On US Dollar
Tuesday, 3 June 2025 05:29 WIB | EUR/USD |EUR/USD

EUR/USD edged higher during the North American session to hit a six-week high of 1.1449, poised to hold above 1.1400 as the US Dollar dropped to levels last seen in April as the "Sell America" trade continued. Escalating trade tensions between the United States (US) and China, as well as the Eurozone (EU), prompted investors to favor the Greenback with the Euro posting a gain of over 0.68%.

Recently, economic data in the US revealed that business activity in the manufacturing sector remained in contraction territory, according to the Institute for Supply Management (ISM).

Last week, US President Donald Trump revealed that China had violated its agreement with Switzerland. As a result, he threatened to impose 50% tariffs on aluminum and steel imports, effective June 4, triggering a flight to safe haven assets, except for the US Dollar.

Beijing responded to Washington's accusations as "baseless and threatened to respond with firm measures."

In other trade news, EU Trade Commissioner Sefcovic will meet with USTR Greer in Paris on Wednesday, according to a spokesman.

The EU economic calendar features the release of the HCOB Manufacturing Purchasing Managers' Index (PMI) for May, with most results mixed, with only Spain showing signs of expansion.(alg)

Source: FXstreet

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