[EUR/USD] Back and Forth Movement

Early in the Tokyo trading session, news about Trump’s tariffs on China, Canada, and Mexico caused the euro to drop, falling to 1.0425. However, it later recovered, rising to 1.0554 in the European session. This recovery was due to the lack of specific mention of European imports being targeted by the tariffs, leading to euro buying.

In the New York session, the euro was pushed down by euro-yen movements, ultimately returning to its previous levels (a “back and forth” move). The adjustment buying after the nearly 600-point drop during the November 6 Trump rally has mostly run its course. With lower liquidity expected during Thanksgiving, the euro is likely to fluctuate between 1.06 and 1.04.