The EUR/USD pair is trading lower for the third consecutive day on Friday, with risk appetite subdued after the US President Donald Trump announced that the European Union (EU) will be included in the next batch of tariff letters and raised blanket levies for all other countries to 15% or 20% from the previous 10%.

The Euro (EUR) extended its decline against a stronger US Dollar (USD) in a risk-off Asian session and trades at 1.1680 at the time of writing, having hit intra-day lows at 1.1665. The broader picture shows the pair in a corrective pullback from the long-term highs reached on July 1, on track to close the week with a 0.8% decline.

Trump rattled markets again, this time in a TV interview, announcing a new round of tariffs for a batch of US partners, and that the European Union will be among them this time. These comments cast doubts about the progress of the trade talks between both parties, but EU officials remain positive about the chances of reaching a deal before the August 1 deadline.

In the macroeconomic front, data from the US released on Thursday showed that initial claims for unemployment benefits fell unexpectedly in the first week of June, adding to evidence of a resilient labour market and giving an additional impulse to the US Dollar.

The calendar today is fairly light, with speeches from European Central Bank (ECB) officials Fabio Panetta and Piero Cipollone, and Current Account figures from Germany during the European morning. In the US, the WASDE agricultural report and the monthly budget statement are unlikely to trigger significant volatility.

Source: Fxstreet