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EUR/USD dropped sharply following fresh tariff threats from US President Donald Trump, impacting the markets. However, significant declines in global risk markets eased as the Trump administration offered 30-day concessions on impending tariffs for Canada and Mexico. The likelihood of US tariffs specifically targeting the EU remain on the table, but details from President Trump remain thin.Markets went full-circle to kick off the new trading week, with risk appetite plummeting after the US looked set to impose sweeping tariffs on some of its closest allies on Tuesday. A last minute stay of imposing stiff import fees on the US’ own constituents helped alleviate bearish pressure underpinning markets for the time being, and investor sentiment has recovered roughly to where it started.European economic data remains this this week, though pan-EU Retail Sales are expected to jump back to 2.0% on Thursday. Another US Nonfarm Payrolls (NFP) print also looms ahead on Friday. Jobs figures are unlikely to move the needle too much this week. The US labor segment remains sturdy, and geopolitical headlines are taking the front seat this week.
EUR/USD price forecast
Despite an intraday bullish recovery, the Euro still chalked in a sixth consecutive session of declines against the Greenback, sending EUR/USD within a stone’s throw of the 1.0200 handle. Bids recovered back above 1.0300, but the pair still remains firmly planted in bear country south of the 50-day Exponential Moving Average (EMA) near 1.0450.
EUR/USD daily chart
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