The euro/the US dollar rises to approximately 1.1400, as Trump extends to the deadline for a tariff over the European Union imports
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- EUR/USD acquires a ground where President Trump extends the date for the tariff by 50 % on European Union imports until July 9.
- President Ursula von der Lin said that the European Union is ready to move quickly in trade negotiations with the United States.
- American markets still have a MOODY classification from the American credit rating.
EUR/USD extends its gains for the second round in a row, trading about 1.1390 during the Asian hours on Monday. The euro (EUR) is gaining land where Bloomberg stated that US President Donald Trump has agreed to extend the date for the tariff by 50 % on the European Union (European Union) until July 9. Sunday. European Commission President Ursula von der Lin has published on social media that the European Union was ready to move quickly in trade talks with the United States (the United States), but requires more time to reach a deal. The American markets will be closed due to the anniversary holiday on Monday.
On Friday, President Trump threatened a position on the social truth to impose a 50 % tariff on imports from the European Union, where Brussels sent a non -good commercial proposal to Washington. Trump said: “Our discussions with them do not go anywhere! Therefore, I recommend a 50 % straight tariff for the European Union, starting from June 1, 2025.”
In addition, the EUR/USD pair is estimated with the US dollar’s loss due to the uncertainty surrounding the American economy. The American financial deficit can increase when a “beautiful, beautiful bill” of Trump passes through the Senate Hall, which increases the risk of bond returns higher for a longer period. The highest bacterial revenues can keep borrowing costs on the highest consumers, companies and governments.
American markets are still under pressure amid the deterioration of the American debt profile as MOODY reduced the American credit rating from AAA to AA1. Federal Moody’s now exposed to about 134 % of GDP by 2035, an increase of 98 % in 2023, as the budget deficit will expand to about 9 % of GDP.
Federal Reserve officials continue to prefer to maintain rates due to the ongoing uncertainty over Trump’s policies. On Friday, the Federal Reserve Chairman of the Chicago (Fed) Goolsbee said that the most recent Trump tariff threats are probably postponed changes to interest rates. Meanwhile, the head of the Kansas City City Jeffrey Schmid indicated that policy makers will establish solid data before formulating interest rate decisions, and the Federal Reserve should be careful of the focus on soft data.
Common questions euro
The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.
Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.
Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
