Русский
Optimism regarding peace talks in Ukraine is mitigating the effects of President Trump’s tariff threats, which is currently limiting the euro’s decline. The euro is finding support in the 1.0400-1.0430 range, while the 1.0480-1.0500 zone remains critical as a resistance point for a possible breakout. This Friday’s Eurozone PMI data could serve as the next market-moving factor, with traders keenly observing signs of economic recovery.
On Wednesday morning, the EUR/USD dropped to around 1.04, pulling back from last week’s gains without any clear triggers besides Trump’s suggestion of imposing tariffs up to 25% on certain imports. This sentiment also impacted European indices like the DAX, which fell significantly after reaching record highs, consequently dragging S&P 500 Futures down as well.
Though there are concerns regarding the tariffs, the ongoing Ukraine peace negotiations are helping to alleviate some of the negative sentiment, supporting the euro for now. A definitive peace accord could lead to a correction for the US dollar, although the current lack of bearish influences on the dollar is allowing for some recovery alongside bond yields.
