- EUR/USD moves higher to near 1.0820 ahead of US President Trump's announcement of reciprocal tariffs.
- Anxiety over Trump's tariffs has dampened the confidence of US businesses and households.
- Soft Eurozone HICP data paves the way for more ECB interest rate cuts.
EUR/USD rises to near 1.0820 during North American trading hours on Wednesday. The major currency pair gains as the US Dollar (USD) declines before the announcement of reciprocal tariffs by United States (US) President Trump at 20:00 GMT. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, falls to near 104.00.
Investors expect Trump's tariffs will also be unfavorable to the US economy, considering consumer and business confidence deterioration. The ISM Manufacturing Purchasing Managers Index (PMI) also showed on Tuesday that the business activity contracted in March after expanding for two straight months. "Demand and production retreated, and destaffing continued, as panellists’ companies responded to demand confusion," ISM Manufacturing Chair Timothy Fiore said.
US President Trump's fresh suite of tariffs is expected to become effective immediately after the announcement. Such a scenario will upend the global trading system, making products of countries that will attract higher tariffs less competitive. Higher import duties will also result in a slowdown in global business investment as firms would struggle to ascertain the demand outlook of their products.
The comments from US Treasury Secretary Scott Bessent on Tuesday also indicated that the President will impose the highest level of levies on his trading partners and stated that targeted countries could pass them by meeting US demands, specifically by diminishing rates on imports from the US.
Meanwhile, the ADP Employment Change data for March has come in better than expected. US private employers added 155K workers, significantly higher than estimates of 105K and the prior release of 84K, revised higher from 77K.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.58% | -0.35% | -0.01% | 0.01% | -0.46% | -0.77% | -0.18% | |
| EUR | 0.58% | 0.25% | 0.55% | 0.59% | 0.14% | -0.21% | 0.41% | |
| GBP | 0.35% | -0.25% | 0.35% | 0.36% | -0.11% | -0.43% | 0.16% | |
| JPY | 0.01% | -0.55% | -0.35% | -0.01% | -0.48% | -0.80% | -0.20% | |
| CAD | -0.01% | -0.59% | -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% | -0.16% | 0.20% | 0.19% | -0.27% | -0.60% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Daily digest market movers: EUR/USD rises amid weakness in US Dollar
- EUR/USD moves higher despite investors expecting the European Union (EU) to be one of the leading trading partners of the US that will attract the highest tariffs. US President Donald Trump has alleged the EU several times for unfair trade practices with the US. Trump has blamed the Eurozone for not buying enough American goods.
- Trump's sweeping hefty tariffs on the Eurozone will significantly impact the region’s economic outlook. Last week, ECB President Christine Lagarde said that the trade war could subtract 0.5% from the bloc’s economic growth. Lower economic growth and easing inflationary pressures in the Eurozone would boost expectations that the European Central Bank (ECB) will cut interest rates in the policy meeting this month.
- On Tuesday, the Eurostat reported that the core Harmonized Index of Consumer Prices (HICP) – which excludes volatile items such as food, energy, alcohol, and tobacco – rose at a slower pace of 2.4% in 12 months to March, compared to estimates of 2.5% and the prior release of 2.6%. During European trading hours on Wednesday, Christine Lagarde also sounded confident in her interview on the Irish radio station Newstalk that the battle against inflation will be over soon. "There is still a bit of work to do on inflation, but it is very close to target," Lagarde said.
- The outlook of the Eurozone could be worsened if the EU Commission shoots retaliatory measures against Trump’s tariff. European Commission President Ursula von der Leyen warned on Tuesday, “We do not necessarily want to retaliate, but if it is necessary, we have a strong plan to do so, and we will use it.” Von der Leyen added that all instruments for countermeasures are “on the table” and that we have the power to “push back against US tariffs”.
Technical Analysis: EUR/USD holds key level of 1.0800
EUR/USD ticks higher but stays inside Tuesday’s range, trading around 1.0800 at the time of writing on Wednesday. The 20-day Exponential Moving Average (EMA) continues to provide support to the pair around 1.0778.
The 14-day Relative Strength Index (RSI) cools down below 60.00, suggesting that the bullish momentum is over, but the upside bias is intact.
Looking down, the December 6 high of 1.0630 will act as the major support zone for the pair. Conversely, the psychological level of 1.1000 will be the key barrier for the Euro bulls.
Economic Indicator
US Liberation Day Tariff Announcements
US President Donald Trump is set to announce wide-ranging tariffs in an event he named "Liberation Day." The moves could significantly affect global trade and financial assets.
Read more.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction above 1.1000 ahead of US CPI release
EUR/USD has found fresh buyers and jumps above 1.1000 in the European session on Thursday. The pair gains on the German coalition deal and Trump's 90-day pause on reciprocal tariffs, which have lifted risk senitment while exacerbating the US Dollar pain ahead of the US CPI data release.
GBP/USD trades firm above 1.2850, US CPI data awaited
GBP/USD sustains the rebound above 1.2850 in European trading hours on Thursday. The British Pound capitalizes on risk appetite, courtesy of Trump's tariff pause, allowing the pair to recover ground. But further upside hinges on the US CPI data and US-Sino trade updates.
Gold price eases from weekly top amid risk-on mood; still well bid above $3,100 ahead of US CPI
Gold price trims a part of its strong intraday gains to a one-week high touched during the early European session on Thursday and currently trades just above the $3,100 mark. Concerns about escalating US-China trade tensions, along with fears about a tariffs-driven economic slowdown, turn out to be key factors that continue to underpin the safe-haven bullion.
US CPI data set to reveal March inflation dip as markets weigh impact of Trump’s tariffs
As measured by the CPI, inflation in the US is set to rise at an annual pace of 2.6% in March, down slightly from the 2.8% reported in February. Core CPI inflation, which excludes the volatile food and energy categories, is expected to ease to 3% in the same period from a year earlier
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.