- Outlook EUR / USD indicates all major care of Trump tariffs.
- Trump threatened to increase tariffs on steel and aluminum goods up to 50%.
- Data on Friday were detected softer than the expected German inflation, supporting bets for the second reduction of the ECB speed.
Outlook EUR / USD indicates all the greater concerns about Trump tariffs that send traders from us to eurozone funds. As a result, the euro climbs despite the expectations that the ECB rating has been cut later this week.
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The dollar was weak as threats to tariff threats last week, renewed concerns about trade wars. Trump threatened to increase tariffs on steel and aluminum goods up to 50%. Such a move would injure some of the main American trading partners, such as the eurozone and Canada. Moreover, they would probably launch similar answers, leading to trade wars. The news violated the dollar while it shook investor confidence in the American economy.
However, since last week, the euro has gained hope of a trade agreement between the United States and the eurozone. The two economies continued serious talks that could give some fruits and avoid trade war.
Meanwhile, Data on Friday detected softer than the expected German inflation, supporting bets for another ECB cut in June. Inflation in the eurozone was on trend and could soon hit 2% of the goal of the Central Bank. Moreover, the probability of more slow growth due to Trump tariffs could force the ECB to maintain its delivery attitude.
On the other hand, basic inflation in the US has increased by 0.1% as expected, probably the FED maintenance on hold and see the attitude.
EUR / USD Key events Today
- US ISM Production of PMI
- Presiding Chair Powell Speaks
EUR / USD Technical Outlook: Bulls Eye 1,1500 Key resistance
On the technical side, EUR / USD price has violated above 1.1401 key resistance to make it higher high. That move strengthened the Bikovska bias. The price now trades well above 30ths, with RSI that is approaching the ported region.
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EUR / USD maintained the Bullish trajectory because he recently turned. The price made a series of larger high and lowest falls, creating a strong stream of support. However, at the time, it shrugged through 30ths, showing that the trend was shallow.
The recent bullishkey switch allows the bullocks to set their landmarks to the next goal of 1,1500 resistance to the key. The pause above will further strengthen postcreen.
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