The EUR/USD exchange rate has appreciated to approximately 1.0820 in anticipation of an impending announcement regarding reciprocal tariffs by US President Trump. This movement coincides with a weakening US Dollar, as reflected in the US Dollar Index (DXY) declining to near 104.00. Market sentiment suggests concerns that the proposed tariffs may negatively impact the US economy, evidenced by declining consumer and business confidence indicators. Recent Eurozone HICP data further supports expectations of potential interest rate reductions by the European Central Bank (ECB). The ISM Manufacturing PMI also indicated a contraction in business activity for March, following two months of expansion, reflecting uncertainty in demand and production.
