Русский
EURUSD:
The EUR/USD exchange rate has rebounded from a three-week low of 1.0735-1.0730, which was reached during Thursday’s Asian session, and appears to have ended a six-day losing streak. This positive momentum has led to an increase in spot prices to the 1.0780 area, marking a fresh daily high in the last hour, and is supported by renewed US Dollar (USD) selling.
In the latest developments, Trump announced the imposition of 25 per cent tariffs on imports of cars and light trucks from next week, although he allowed a one-month delay for auto parts imports.
This follows the recent imposition of a 25 per cent flat tax on steel and aluminium imports, and the impending retaliatory tariffs scheduled for April 2nd, contributing to a climate of uncertainty that eclipses the positive sentiment surrounding the release of stronger-than-expected US durable goods orders data on Wednesday. The Federal Reserve’s (Fed) forecast for two 25 basis point interest rate cuts before the end of this year is exerting downward pressure on the dollar and providing support for EUR/USD.
In addition, the European Union (EU) has announced its intention to impose retaliatory tariffs on imports from the US. This has led to speculation about the possibility of a trade war between the EU and the US, which could potentially impact the common currency. Additionally, a surge in anti-risk sentiment, as evidenced by a broad-based weakness in equity markets, could bolster the safe-haven dollar and temper the upside potential of EUR/USD.
Traders are now eagerly awaiting the release of data on the US economy, including final GDP data for the fourth quarter, the usual data on initial jobless claims for the week, and pending home sales data. In addition, speeches by influential FOMC members will strengthen the dollar and give some impetus to the EUR/USD pair. However, market attention remains focused on the US Personal Consumption Expenditure (PCE) price index on Friday.
Trading recommendation: SELL 1.0770, SL 1.0840, TP 1.0675
Origin: FreshForex
