- The EUR/USD briefly returns to 1,0900 in the middle of an avalanche of headlines on Friday.
- The World Trade Organization could examine whether the tariff policy of US President Trump is illegal.
- The markets have a sign of relief about the probabilities that an expense bill will be approved, avoiding the closure of the US government, later this Friday.
The EUR/USD pair advances and recovers to 1,0900 at the time of writing on Friday, erasing its slow performance from the beginning of this week. The resurgence in the pair occurs after two headlines emerged late on Thursday. The Democratic leader of the United States Senate, Chuck Schumer, announced that he plans to vote to maintain the open government, supporting government financing measures approved by the Chamber and effectively ending the risk of closing in the US.
Meanwhile, Canada initiated a dispute complaint in the World Trade Organization (WTO) and requested a review of the tariff implementations of President Donald Trump, which could be illegal and contradict the WTO’s commercial rules, reports Reuters. That would mean a great setback for President Trump’s plans before reciprocal tariffs enter into force in April.
What moves the market today: Michigan problems
- The gold, as an active refuge asset, has exceeded the 3,000 $ 3,000 mark on a rally induced by the fear of the recession, since the operators are concerned about economic growth and the perspectives of tariffs, with reciprocal encumbrances that will enter into force in April.
- The University of Michigan has published its preliminary reading of consumer expectations for March:
- The US consumer’s feeling index fell below 60 to 57.9. A great disappointment to the expectations of 63.1 and from 64.7 in February.
- The 5 -year consumer inflation expectation in the US jumped at 3.9%, exceeding 3.5% in the final reading of February.
- The actions are trying to put aside this week’s negative tone. All indices are above 0.50% in Europe and the US on Friday.
- The CME Fedwatch tool projects a 97.0% probability that the Federal Reserve (FED) maintain interest rates without changes in Wednesday’s decision. The possibilities of a rate cut at the May meeting are 32.8%, while showing a 78.5% probability that the rates are lower than the current levels in June.
- The 10 -year performance of the USA trades around 4,329%, far from its minimum of almost five months of 4.10% registered on March 4 and after reaching a maximum of five days on Thursday.
Technical Analysis: Support at a crucial moment
Friday’s closure is vital for the EUR/USD. According to the technical graphics, the torque is likely to close above an ascending crucial tendency (green in the graph below), which offered support on Thursday and Friday. A closure above that line would mean that the psychological level of 1.1000 could be at stake for next week.
Upwards, 1.1000 is the key level to consider. Once that level is broken, the torque enters the famous range of 1.1000-1.1500, where it often tends to stay for a long time. Certainly, the round figure of 1,1200, which coincides with the maximum of September and October of last year, seems interesting for a brief test and possible upward break.
On the negative side, the ascending trend line in 1.0840 should continue to provide support for now. In case it breaks, the road is open to go to the 1,0700 region. The simple mobile average (SMA) around 1,0722 should be key to operators who want to buy in the fall.
EUR/USD: Daily graphic
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
