The EUR/USD pair declined to approximately 1.0900 as the US Dollar strengthened in anticipation of trade discussions involving the Trump administration. Previous threats of increased tariffs on China, in response to retaliatory measures, had heightened market concerns. Investors are monitoring the Eurozone finance ministers’ meeting, where potential responses to US tariffs will be deliberated. The US Dollar Index (DXY) rebounded to around 103.35, reflecting the Greenback’s recovery amid easing trade war anxieties. Statements from US Treasury Secretary Scott Bessent and White House Economic Adviser Kevin Hassett indicated a willingness to negotiate tariffs, potentially leading to their reduction or removal, contingent upon reciprocal trade concessions from targeted nations. This prospect has alleviated concerns regarding potential domestic economic repercussions.
