The euro/the US dollar rises with the decline in the US dollar before the announcement of the Trump tariff
- Euro/US dollar is up to approximately 1.0820 before US President Trump announced the mutual definitions.
- The anxiety of Trump’s tariff has reduced the confidence of American companies and families.
- The soft HICP data in the euro area paves the way for more interest rates in the European Central Bank.
The euro/the US dollar rises to approximately 1.0820 during the trading hours in North America on Wednesday. The main currency pair is acquired with the US dollar decline (USD) before announcing the mutual definitions by the President of the United States (United States) Trump at 20:00 GMT. The US dollar index (DXY), which tracks the value of Greenback compared to six main currencies, decreased to nearly 104.00.
Investors expect that Trump’s tariff will be unfavorable to the American economy, taking into account the deterioration of consumer and business confidence. The ISM manufacturing manager (PMI) also showed that the commercial activity that was contracted in March after expanding for two consecutive months. “The demand and production declined, and the books continued, as the aircraft companies responded to circumvent the demand,” said ISM,
It is expected that the fresh definitions group of US President Trump will become valid immediately after the announcement. This scenario will raise the global trading system, which makes the products of countries that will attract customs tariffs the highest competitiveness. High import duties will also slow down in the investment of global business, as companies will fight to ensure the demand for demand for their products.
The comments from US Treasury Secretary Scott Payette indicated on Tuesday that the president will impose the highest level of fees on his commercial partners and stated that the targeted countries can pass by meeting the American demands, specifically by decreasing rates on imports from the United States.
Meanwhile, the ADP employment change data in March has become better than expected. The employers from the private sector in the United States added 155 thousand workers, which is much higher than the estimates of 105 thousand and the previous release than 84 km, a review above 77 thousand.
US dollar price today
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed today. The US dollar was the strongest against the Canadian dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -58 % | -0.35 % | -01 % | 0.01 % | -0.46 % | -0.77 % | -18 % | |
| euro | 0.58 % | 0.25 % | 0.55 % | 0.59 % | 0.14 % | -0.21 % | 0.41 % | |
| GBP | 0.35 % | -0.25 % | 0.35 % | 0.36 % | -11 % | -0.43 % | 0.16 % | |
| JPY | 0.01 % | -0.55 % | -0.35 % | -01 % | -0.48 % | -0.80 % | -0.20 % | |
| CAD | -01 % | -59 % | -0.36 % | 0.01 % | -0.47 % | -0.77 % | -0.19 % | |
| Aud | 0.46 % | -0.14 % | 0.11 % | 0.48 % | 0.47 % | -0.32 % | 0.27 % | |
| Nzd | 0.77 % | 0.21 % | 0.43 % | 0.80 % | 0.77 % | 0.32 % | 0.60 % | |
| Chf | 0.18 % | -0.41 % | -16 % | 0.20 % | 0.19 % | -0.27 % | -0.60 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
Digest Market Mark: The euro/the US dollar rises amid weak in the US dollar
- EUR/USD moves up, although investors expect the European Union (EU) to be one of the main commercial partners in the United States who will attract the highest definitions. US President Donald Trump has claimed the European Union several times due to unfair commercial practices with the United States. Trump blames the euro area for not buying enough American goods.
- Trump’s huge tariffs will significantly affect the region’s economic expectations. Last week, European Central Bank President Christine Lagarde said that the trade war could offer 0.5 % of the economic growth of the bloc. Low economic growth and ease of inflationary pressures in the eurozone will enhance expectations that the European Central Bank (ECB) will reduce interest rates at the policy meeting this month.
- On Tuesday, EUROSTAT reported that the basic textiles index (HICP) – which excludes volatile elements such as food, energy, alcohol and tobacco – rose at a slower 2.4 % in 12 months to March, compared to 2.5 % estimates and the previous version by 2.6 %. During the European trading hours on Wednesday, Christine Lagarde also looked confident in her interview at the Irish radio station, that the battle against inflation would end soon. “There is still a few work to do inflation, but it is very close to the goal,” Lagarde said.
- The eurozone looks can exacerbate if the European Union Committee launches reprisals against the Trump tariff. European Commission President Ursula von der Lin warned on Tuesday, “We do not necessarily want revenge, but if necessary, we have a strong plan to do this, and we will use it.” Von Der Leyen added that all counter -measures are “on the table” and that we have the ability to “push against American definitions.”
Technical Analysis: EUR/USD maintains a major level of 1.0800
Euro/US dollar is higher but remains within Tuesday, and about 1.0800 trading at the time of writing this report on Wednesday. The 20 -day SIA moving average (EMA) continues to provide support to the husband about 1.0778.
The relative strength index cools for 14 days (RSI) to less than 60.00, indicating that the upscale momentum has ended, but the bullish bias is sound.
Looking down, the highest level on December 6 of 1.0630 will serve as the main support area of ​​the husband. On the contrary, the psychological level of 1.1000 will be the main barrier of euro bulls.
Economic indicator
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