The EUR/USD pair is attempting to surpass 1.1000 as the U.S. Dollar weakens due to increasing anticipation of a Federal Reserve interest rate cut in June. This movement occurs amidst escalating trade tensions, with former President Trump threatening additional tariffs on China in response to retaliatory measures against previously announced U.S. levies. Market participants are also awaiting the Eurozone finance ministers’ meeting to discuss potential responses to these tariffs. The EUR/USD has risen to approximately 1.0950 during North American trading, driven by pressure on the USD following the tariff announcements. The U.S. Dollar Index (DXY) has declined to near 103.00. Concerns persist that these tariffs and subsequent countermeasures could precipitate an economic recession. Trump’s threat to increase import duties on China by 50% if retaliatory tariffs are not withdrawn further exacerbates the situation. A Chinese Ministry of Commerce spokesperson has characterized the U.S. tariff threats as detrimental and affirmed China’s commitment to safeguarding its interests.
