EURUSD:
The EUR/USD pair extended its gains to 1.1775 during early European trading on Thursday. The euro (EUR) rose against the US dollar (USD) amid hopes for a trade deal between the European Union (EU) and the United States (US).
The EU and the US are moving towards a trade agreement that could include a 15% US base tariff on EU goods and possible exemptions. Optimism surrounding the trade deal is providing some support for the single currency. European trade negotiators have been trying to reach a deal to avoid a 30% tariff that Trump has announced will be imposed on imports from the EU from 1 August.
However, the bloc plans to impose counter-tariffs worth €93 billion if no deal is reached, which could lead to an escalation of trade tensions.
The ECB is expected to leave its deposit rate unchanged at 2.0% at its July meeting on Thursday, as policymakers await clarity on how US President Donald Trump’s tariffs will affect inflation.
Trade recommendation: BUY 1.1785, SL 1.1725, TP 1.1865
Origin: FreshForex
