The EUR/USD exchange rate approached 1.1100 as the US dollar weakened amid escalating trade tensions between the United States and China. This movement occurred following China’s announcement of increased tariffs on US goods, effective April 10, in response to reciprocal tariff increases imposed by the US. The market had anticipated retaliatory measures from China, as indicated in a recently released White Paper outlining Beijing’s commitment to safeguarding its interests and opposing unilateral trade restrictions. European Central Bank (ECB) Governing Council member Gediminas Šimkus has also voiced support for a potential interest rate cut in April.
