The EUR/USD exchange rate depreciated as the US Dollar strengthened following reports that the United States is considering a 90-day suspension of tariff implementation for all trading partners except China. This development follows commentary from Director of the National Economic Council, Kevin Hassett, although official White House confirmation is pending. JP Morgan analysts project a 0.3% contraction in the US economy this year should full-scale tariffs be enacted. European Central Bank (ECB) policymaker Isabel Schnabel anticipates that further tariffs would exacerbate economic uncertainty. The EUR/USD pair partially recovered intraday losses, reaching approximately 1.0940 during North American trading hours after an earlier decline to around 1.0880. As of this writing, the pair is down nearly 0.25%. The US Dollar Index (DXY) rose to approximately 103.20, reflecting increased demand for the Greenback. A temporary tariff reprieve could provide affected nations with an opportunity to negotiate trade agreements with the US, potentially mitigating negative economic impacts.
