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The EUR/USD pair trades with mild losses around 1.0410 during the Asian trading hours on Thursday. The Euro (EUR) softens as US President Trump has threatened to impose tariffs on the Eurozone. The European Commission will release its advanced Consumer Confidence report for January. On the US docket, the usual weekly Initial Jobless Claims will be published.
Trump on Tuesday said that his administration was discussing 25% tariffs against Canada and Mexico, as well as duties on China and the European Union. The concerns about an economic slowdown in the Eurozone economy and uncertainty surrounding Trump’s tariff threats could drag the shared currency in the near term.
Furthermore, analysts expect Trump’s administration could trigger inflationary pressures, potentially convincing the US Federal Reserve (Fed) to cut rates only once this year. This, in turn, might boost the US Dollar (USD) and act as a headwind for EUR/USD.
Across the pond, the European Central Bank (ECB) is anticipated to deliver 25 basis points (bps) rate cuts in the next four meetings. ECB President Christine Lagarde, along with policymaking council members Francois Villeroy de Galhau, Klaas Knot, and Yannis Stournaras, all supported further policy easing. The dovish expectation from the ECB policymakers is likely to undermine the EUR against the Greenback.More By This Author:USD/CAD Posts Modest Gains Above 1.4350 As Traders Assess Trump 2.0 WTI Tumbles To Near $75.50 As Trump Plans To Boost Oil Output, Impose Tariffs EUR/GBP Holds Positive Ground Near 0.8450 After Mixed UK Employment Data
