The EUR/USD exchange rate approached 1.1100 during Wednesday’s North American session, driven by a weakening US Dollar amid escalating trade tensions between the United States and China. The Euro gained strength as Beijing announced increased tariffs on US goods, effective April 10, in response to reciprocal tariffs imposed by the US. This action follows China’s earlier indication, outlined in a White Paper, that it would implement countermeasures to protect its interests against what it termed “unilateral and bullying restrictive measures.” European Central Bank (ECB) Governing Council member Gediminas Šimkus has also voiced support for a potential interest rate cut in April, adding further complexity to the Eurozone’s economic outlook.
