- The EUR/USD pair declines, approaching 1.1350, as the US Dollar strengthens amid growing expectations of eased tensions in the US-China trade dispute.
- Reports suggest that Beijing is weighing a temporary halt to further tariff increases on select US products.
- ECB Governing Council member Holzmann cautions about underlying vulnerabilities within the Eurozone economy.
EUR/USD is trading downward, hovering around the 1.1350 mark during Friday’s North American session. This decline in the pair is attributable to a resurgence in the US Dollar (USD), fueled by optimism surrounding potential progress in trade discussions between the United States (US) and China.
The US Dollar Index (DXY), which measures the Dollar’s performance against a basket of six major currencies, is regaining upward momentum on Friday, following a correction to approximately 99.20 the previous day. The USD Index is climbing towards 99.65, with its sights set on surpassing the weekly peak near 100.00.
Market sentiment has become more optimistic regarding a possible de-escalation of the trade conflict between the world’s leading economies. This follows indications from China that it may consider a temporary suspension of the 125% tariff on imports of medical devices and certain industrial chemicals from the US, according to a Bloomberg report on Thursday.
