At the end of last week, President Trump said he would add a 50% tax on goods from the EU. But instead of going down, the euro went up. On Monday, he said the 50% tax would continue until July 9, but the euro did not move much at first. Later, people started selling dollars, so the euro went up to 1.1418. Since the London and New York markets were closed, the euro then stayed mostly flat in the upper 1.13 range.
That day, European Central Bank President Lagarde said even the strong position of the US dollar is now uncertain. Also, the head of Germany’s central bank said that tariffs could hurt the US economy even more. Because of this, some investors may choose to buy euros instead of dollars.
In the end, Trump’s tariff comments made people trust the dollar less, which helped the euro go higher. But the tariff news is also bad for Europe, so the euro may not go much higher from here.
Expected EUR/USD Price Range: 1.1220 – 1.1450 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.