- EUR/USD faces challenges amid renewed concerns about Trump’s tariffs.
- The US Treasury Secretary, Scott Besent, warned that tariffs could go back to April 2 on August 1.
- The EU commission declared that it is close to ending a framework for a commercial agreement with the United States.
EUR/USD moves down after registering profits in the previous session, quoting around 1,1780 during Monday’s Asian hours. The PAR faces difficulties due to renewed concerns about tariffs, promoted by the comments of the US Treasury Secretary, Scott Besent. Retail sales of the Eurozone and German industrial production will be observed later in the day.
Treasury Secretary Besent said Sunday that US President Donald Trump will send letters to some commercial partners, warning that tariffs could reverse at the levels of April 2 on August 1 if not progressing in a commercial agreement. He clarified that August 1 is not another new deadline for tariffs, but suggested that it could still give commercial partners more time to renegotiate tariff rates.
In addition, the Secretary of Commerce, Howard Lutnick, confirmed that the new tariffs will enter into force on August 1. Lutnick added that Trump is finishing specific rates and agreements and could send 12 or 15 tariff letters on Monday. He also indicated that trade agreements or letters with most nations will be completed for July 9.
The European Union Commission (EU) announced that it is close to a framework for a commercial agreement with the United States (USA) to avoid the reintroduction of aggressive tariffs before the term of July 9. In addition, Bloomberg reported that “some cars and capital manufacturers of the European Union are pressing for an agreement with Trump that would allow tariff relief in exchange for increasing investment in the US.
The negative side of the EUR/USD torque could be contained since the euro (EUR) could be seen due to the hard line comments of the president of the European Central Bank (ECB), Christine Lagarde. Lagarde said that “we will do what is necessary to achieve the target of inflation.”
Economic indicator
Retail sales (MOM)
This survey of goods sold by retail merchants that publishes Eurostat It is based on a sample of retail stores of different types and is considered an indicator of the economy growth rate. It shows the performance of the retail sector in the short and medium term. A result superior to the market consensus is bullish for the euro, while a lower result is bassist.
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Next publication:
lun jul 07, 2025 09:00
Frequency:
Monthly
Dear:
-0.7%
Previous:
0.1%
Fountain:
Eurostat
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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.
