The Euro (EUR) has experienced a marginal increase against the US Dollar (USD), currently trading around 1.1044, according to FX analysts Frances Cheung and Christopher Wong at OCBC. Technical indicators suggest consolidation, with flat daily momentum and a rising Relative Strength Index (RSI). Key resistance is observed at 1.1050, while support levels are identified at 1.0910 (23.6% Fibonacci retracement) and 1.0880 (21-day moving average).
The European Union (EU) is anticipated to vote on a revised retaliatory package targeting approximately EUR21 billion worth of US goods, a reduction from the initial EUR26 billion, in response to US tariffs on steel and aluminum. Notably, bourbon and wine have been removed from the list.
Furthermore, the EU is expected to develop a more comprehensive set of countermeasures by the end of April, addressing tariffs on automobiles and broader trade issues. EU Trade Chief Sefcovic has indicated the EU’s willingness to explore all retaliatory options, including the Anti-Coercion Instrument, which could restrict US services or limit US companies’ access to EU public procurement. However, the EU is currently prioritizing negotiations to avoid a full-scale trade conflict.
