- The EUR/USD is recovered from minimums of more than two weeks while the operators reassess Trump’s tariff threats.
- US president Trump threatens 30% tariffs to all EU imports from August 1.
- The EU Commission proposes a second batch of countermeasures aimed at US imports worth 72,000 million euros.
The euro (EUR) recovers land against the US dollar (USD) on Monday, after reaching its lowest level in more than two weeks early in the day, while operators reassess the impact of the growing commercial tensions between the United States (USA) and the European Union (EU).
The EUR/USD was pressed after US President Donald Trump threatened during the weekend with imposing 30% tariffs on European imports as of August 1. However, a modest setback in the dollar and a cautious optimism around possible negotiations helped the shared currency to recover part of the land lost during the American negotiation hours.
At the time of writing, the EUR/USD torque is quoted around 1,1689, recovering modestly after falling to an intradic minimum of 1,1654 during the European session. Meanwhile, the American dollar index (DXY), which tracks the value of the dollar against a basket of six main currencies, is quoted flat below the psychological brand of 98.00, since investors become cautious before the key data inflation of the consumer price index (CPI) and other trading -related developments.
In response to tariff threats, the EU announced on Sunday that it will extend its suspension of retaliation tariffs against the United States until the beginning of August, with the aim of keeping diplomatic channels open. President Ursula von der Leaden emphasized that Brussels remains committed to finding a negotiated solution and warned that the proposed 30% tariff of the US would have “serious consequences” for transatlantic trade. It is reported that the block is prepared with a two -level countermeasures plan: a first packet of tariffs of 21,000 million euros and an expanded package of 72,000 million euros, in case the conversations fail.
The European Commissioner of Commerce, Maroš šefčovič, announced Monday that the European Commission has prepared a second round of countermeasures and shared the proposal with the EU member states. The new list points to approximately 72,000 million euros (84.1 billion dollars) in US imports, significantly expanding the potential response arsenal of the block in case the conversations with Washington break.
“Our rebalancing measures on steel and aluminum are suspended until early August,” said Šefčovič at a press conference in Brussels. “Today, the Commission is sharing with the Member States the proposal for the second list of goods … Member States will now begin discussions about details.”
This second batch adds to an earlier package of retaliation tariffs worth 21,000 million euros, mainly focused on US steel and aluminum products from EU officials have emphasized that, although the block remains open to a negotiated resolution, it is fully prepared to defend their economic interests if necessary.
In view of the future, this week’s economic calendar will be crucial for the EUR/USD address, with the markets focused on the publication of the US Consumer Price Index on Tuesday, followed by the inflation data of the euro zone on Thursday.
Economic indicator
Consumer Price Index (Monthly)
Inflation or deflationary trends are measured by periodically adding the prices of a basket of representative goods and services and presenting the data such as the consumer price index (CPI). IPC data is collected monthly and are published by the Labor Statistics Office of the US the intermensual figure compares the prices of the goods in the month of reference with the previous month. The CPI is a key indicator to measure inflation and changes in consumption trends. Generally, a high reading is considered bullish for the US dollar (USD), while a low reading is considered bassist.
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Next publication:
Mar Jul 15, 2025 12:30
Frequency:
Monthly
Dear:
0.3%
Previous:
0.1%
Fountain:
US Bureau of Labor Statistics
The US Federal Reserve (FED) has a double mandate to maintain price stability and maximum employment. According to this mandate, inflation should be around 2% year -on -year and has become the weakest pillar of the Central Bank directive since the world suffered a pandemic, which extends until these days. Price pressures continue to increase in the midst of problems in the supply chain and bottlenecks, with the consumer price index (IPC) at maximum levels of several decades. The Fed has already taken measures to tame inflation and it is expected to maintain an aggressive position in the predictable future.
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.
