In early Monday trading, the EUR/USD pair climbed 0.48% to around 1.1415. The gain came after U.S. President Donald Trump announced a delay in implementing 50% tariffs on European Union imports until July 9. The decision followed a phone call with Ursula von der Leyen, President of the European Commission, and provided short-term support for the euro against the U.S. dollar.
Earlier in April, Trump had imposed a 20% tariff on EU imports as part of his so-called reciprocal tariff strategy and later reduced the rate to 10% for a 90-day period. Now, the extended deadline is seen as a relief for markets and has temporarily strengthened the common currency.
Markets Focus on Lagarde and Nagel
Later today, investors will closely watch speeches from European Central Bank (ECB) President Christine Lagarde and Bundesbank President Joachim Nagel. Their comments may shape expectations around the ECB’s next moves, particularly as markets have already priced in a more than 90% chance of a rate cut at the upcoming June 5 meeting.
Meanwhile, ECB Governing Council member Yannis Stournaras stated that the central bank may hold borrowing costs steady after a possible 25 basis point rate cut next month. He emphasized that the ECB would continue with a data-driven, meeting-by-meeting approach to monetary policy.
Ongoing Trade Uncertainty Remains a Risk
Despite the delay, the threat of further U.S. tariffs still looms, keeping trade uncertainty high. Any renewed escalation could pressure the euro and contribute to market volatility in the weeks ahead.
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