- The EUR/USD starts the new week with a stronger tone amid a sustained sale bias of the USD.
- Uncertainties related to commerce and bets for feat cuts of the Fed continue to weigh on the US dollar.
- The moderate ECB rate cut last week recently to affect the bullish tone around the pair.
The Eur/USD pair breaks a negotiation range of several days and touches a new maximum since February 2022, around the area of ​​1,1485 during the Asian session on Monday. The impulse is sponsored by the bearish feeling around the US dollar (USD), which supports the prospects of an extension of the recent well -established bullish trend.
Despite the hard line comments of the president of the Federal Reserve (FED), Jerome Powell, the uncertainty about the commercial policies of US President Donald Trump continues to undermine the dollar. Powell said last Wednesday that the Fed will probably maintain its stable reference interest rate and will expect greater clarity before considering any adjustment in the policy position. Meanwhile, Trump’s rates ads have affected the confidence of investors in US economic growth and dragged the USD to a minimum of two years at the beginning of a new week.
The factors mentioned, to a large extent, compensate for the moderate decision of the European Central Bank (ECB) last week and act as a tail wind for the Eur/USD torque. The ECB reduced interest rates for the seventh time in a year on Thursday and warned that economic growth will suffer a great blow to US rates, reinforcing the case for a greater flexibility of politics in the coming months. However, this is recently attracted to significant vendors around the shared currency, validating the short -term positive perspective for the currency pair in the midst of a relatively scarce liquidity on Easter Monday.
Looking ahead, operators this week will take signs of the scheduled speeches of the president of the ECB, Christine Lagarde, Tuesday and several influential members of the FOMC this week. Apart from this, the market approach will be in the publication of preliminary PMIs, which could provide a new vision of global economic health. This, in turn, could provide some impulse to the USD and the EUR/USD. However, the fundamental background suggests that the path of lower resistance for the currency torque remains upwards and any corrective setback is likely to be purchased.
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.
