The EUR/USD pair has weakened as the US Dollar gained strength, driven by President Trump’s threat to impose 25% tariffs on select items including automobiles, semiconductors, and pharmaceuticals. The US Dollar Index (DXY) climbed to near 107.20, reflecting the currency’s broad-based strength. Market participants are concerned about the potential impact of these tariffs, particularly on economies like Germany, which is already experiencing contraction. ECB policymaker Joachim Nagel highlighted Germany’s vulnerability due to its export-oriented economy. Meanwhile, investors expect the Federal Reserve to maintain interest rates between 4.25%-4.50% for the near term, according to the CME FedWatch tool. The upcoming FOMC minutes will provide further insights into the Fed’s policy outlook. On the technical front, EUR/USD struggles to hold above the 50-day EMA, currently around 1.0430. The pair’s support and resistance levels are seen at 1.0285 and 1.0630, respectively. — news from FXStreet
