- The euro shoots at new seven -week maximum with the US dollar in recoil.
- The renewed tariff fears and weak inflation data are weighing on the US dollar.
- The EUR/USD bundles focus on the maximums of the year to date in 1,1575.
The Eur/USD He has exceeded the rank of the last days and is being negotiated above 1,1500 for the first time in almost two months this Thursday. A new tariff threat of US President Donald Trump, along with moderate US inflation figures, is hitting the US dollar (USD).
The effect of the commercial truce with China has been ephemeral. Trump has agreed the markets again, stating that unilateral tariffs will impose on commercial partners if they do not reach a commercial agreement before the deadline of July 9, Bloomberg reports.
Before that, the US dollar was already disadvantaged after consumer price index data (CPI) of the US published on Wednesday, which increased the expectations that the Federal Reserve (Fed) could cut the rates of interest in September.
Future markets are valuing a probability of almost 60% of a rate cut of 25 basic points after summer, compared to 50% of last week, according to data from the CME Fed Watch tool.
The Eurozone calendar is light this week, but a series of policy responsible for the European Central Bank have reiterated the last message of President Christine Lagarde, hinting at the end of the relaxation cycle.
This change of rhetoric, backed by a series of positive US data last week, is highlighting a divergence in monetary policy with the Federal Reserve that provides additional support to the common currency.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.24% | -0.01% | -0.39% | -0.08% | 0.14% | 0.13% | -0.44% | |
| EUR | 0.24% | 0.23% | -0.17% | 0.16% | 0.36% | 0.37% | -0.18% | |
| GBP | 0.00% | -0.23% | -0.41% | -0.07% | 0.12% | 0.12% | -0.44% | |
| JPY | 0.39% | 0.17% | 0.41% | 0.32% | 0.52% | 0.47% | -0.05% | |
| CAD | 0.08% | -0.16% | 0.07% | -0.32% | 0.22% | 0.18% | -0.36% | |
| Aud | -0.14% | -0.36% | -0.12% | -0.52% | -0.22% | 0.00% | -0.55% | |
| NZD | -0.13% | -0.37% | -0.12% | -0.47% | -0.18% | -0.00% | -0.56% | |
| CHF | 0.44% | 0.18% | 0.44% | 0.05% | 0.36% | 0.55% | 0.56% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
What moves the market today: the operation “Sell America” ​​continues
- The US president Trump shook the markets, announcing early on Thursday that he will send letters to the commercial partners in the next few days with the terms of a commercial agreement to avoid higher tariffs before the deadline of July 9.
- The fragile commercial truce between the US and China failed to support the US dollar on Wednesday. The US dollar index has fallen to new minimums of seven weeks and is approaching the minimum multiannual of April in 97.95. The euro is one of the biggest beneficiaries of the weakness of the US dollar.
- Also on Wednesday, US consumer prices increased 0.1% in May and 2.4% compared to the same month last year, below the market consensus of 0.2% and 2.5%, respectively. The underlying inflation fell to 0.1% in the month and remained stable at 2.8% year -on -year, also below the figures of 0.3% and 2.9% anticipated by the market.
- An US Treasury bond auction at 10 years found a strong demand on Wednesday, which relieved fears on US fiscal debt and provided some support to the US dollar.
- The approach on Thursday will be in the US Production Price Index (IPP) to confirm benign inflationary pressures and increase the hopes of a rate cut in September. The general IPP is expected to accelerate at a monthly rate of 0.2% and 2.6% year -on -year from -5% and 2.4% readings in April.
- In the Eurozone, more ECB officials will take the stage today. It is likely that those responsible for policies will discourage the hopes of greater monetary relief in the future, which is a message of support for the euro.
Technical analysis: EUR/USD approaches the maximums of the year to date in 1,1575
The EUR/USD has broken the recent consolidation range and is directed up. The 4 -hour RSI is approaching the territory of overcompra, which suggests a possible setback, but the downward attempts will probably find buyers.
The PAR has found resistance in 1,1530, not far from the maximum of April 22 in 1,1547, which is the last obstacle before the maximum of the year to date in 1,1572 (maximum of April 21).
In the lower part, the supports are at the intra -level of 1,1480 before the previous resistance, which will now act as support, in 1,1460 (maximum of June 2 and 10). The bassists should push the torque below those levels to cancel the upward trend.
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.
