Even though President Trump announced an extension of the 50% tariffs, the euro still went down. Last week, after the first announcement of the tariff increase, the euro first dropped and then went up. This time, it also started to rise but quickly fell again. This shows that the U.S. dollar is still leading the market.
The tariff delay is only until July 9, and there is still a chance that tariffs could be applied again depending on future talks. This makes it hard for traders to feel safe buying euros.
Also, France’s inflation report (CPI) was lower than expected, which led to selling of the euro. In addition, ECB official Lane said that “no one at the ECB is considering a big interest rate cut,” but this still caused more euro selling.
Unless the euro starts to lead the market during the tariff extension period, it may remain weak.
EUR/USD Expected Range: 1.1270 – 1.1370
Note: This information does not guarantee profits. Please make your own decisions when trading.