EUR/USD is reflected because the EC concessions are planning to avoid Trump tariffs

EUR/USD collection from the lowest end -up level of 1.0765 after issuing PCE inflation in the USA for February.
The European Commission is planning the US configuration to avoid Trump’s mutual and car tariffs.
In March, inflation in Spain and France grew at a moderate pace.

EUR/USD is reflected when the euro (EUR) is recovered after the European Commission (EC) has signaled that it has prepared concessions for the United States (USA) to avoid some tariffs of President Donald Trump, which it will announce on Wednesday. The European Union (EU) defines concessions that can be ensured by the administration of Donald Trump in order to ensure partial removal of American tariffs, which have already started to hit the block export and which are to boost after April 2, Bloomberg informed.

An attempt to provide the EU in the United States may reduce the fears of an adverse trade war between the euro area and the USA. Fears of the elongated trade war intensified after he warned the retaliation tariffs on the US for imposing a 25% of the koca fee on cars. German car manufacturers send 13% of total car exports to the USA, and 25% tariff for cars can make their cars less competitive on the global market.

“We regret 25% of car tariffs and a new set of funds that will come on April 2, but we are preparing for everyone,” said Olof Gill spokesman on Thursday. When asked about the degree and date of retaliation, Gill refrained from the presidency of correct times, but assured that it would be “timely, solid, well -calibrated and achieved the intended influence.”

Participants of the financial market and German leaders warned that car tariffs would be a loser situation for both countries. “Trump’s decision is wrong,” said German Chancellor Olaf Scholz on Thursday and added that the US chose a path on which “just losers”, because tariffs and insulation hurt the prosperity “for everyone”.

Officials of the European Central Bank (EBC) also expect that Trump’s tariff program will harm economic growth in the euro area and boost inflationary pressure in the near future. Vice President of ECB Luis de Guindos said that the inflation of tariffs on inflation would be short-lived, but will continue to grow. “In the event of an increase, trade is extremely harmful,” said De Guindos and added that “the worst result is the wrong circle of tariff/retaliation.” In the guidelines regarding monetary policy, De Guindos said: “It is very difficult to say what EBC will do in April.”

On the economic front, marching data in France and Spain has been preliminary inflationary data showed that price pressure increased at a slower than expected pace. Within 12 months to March, the French consumer price indicator (CPI) (EU standard) has constantly increased by 0.9%, slower than 1.1%estimates. At the same time, the harmonized consumer price index of Spain (HICP) increased at a slower pace by 2.2%, compared to the earlier edition of 2.9%.

Daily Digest Market Movers: EUR/USD collections as licenses for us

EUR/USD becomes positive after regaining losses among and increases to almost 1.0820 in North American commercial hours on Friday. The main pair of currencies strengthens when the US dollar (USD) returns after the American Personal Consumption Price (PCE) indicator is released to February. The American dollar indicator (DXY) will drop to almost 104.00, despite the fact that the report has shown that the basic PCE inflation – which excludes unstable food and energy prices – increased at a faster rate of 2.8% on year compared to 2.7% estimates and the January and January reading of 2.6%. In a month, the basic inflation data increased by 0.4%, faster than expectations and the previous edition of 0.3%.
The importance of the basic data of PCE inflation is high because it is strictly tracked by Federal Reserve officials (FED) to assess inflationary pressure. The boost in PCE inflation with higher than expected before the announcement of the upcoming mutual tariffs by the US President Donald Trump on April 2, will force traders to boost the expectations of the FED to maintain interest rates in the current range 4.25% -4.50% for a longer period.
It is expected that the imposition of mutual tariffs by the US President Trump will burden economic growth and boost inflation pressure around the world, including in the USA. Trump also announced a 25% car tariff entering the USA on Wednesday, which will enter into force from April 2. Trump’s Auto Levy resulted in global chaos in the actions of car production companies and auto-acillary.
Federal reserve officials (FED) expressed concerns about the revival of price pressure in the near future due to Trump’s tariff program. “It seems inevitable that the tariffs will increase inflation in the near future,” said President Boston Fed Bank Susan Collins at the event on Thursday. Collins added that it seems that it is more likely that the boost in inflation will be “short -lived”, but he warned against “potential risk” that higher price pressure can be of character. As for the perspectives of interest rates, Collins said that keeping them at current levels for longer “will probably be appropriate”. However, the Fed should show “active patience” and be ready for “flexible”.

Technical analysis: EUR/USD has a key 20-day EMA

EUR/USD collections from the lowest level 1.0765 to 1.0820 in a Friday session in North America. The pair has a 20-day interpretation average (EMA), which trads around 1.0760.

The 14-day relative strength indicator (RSI) cools below 60.00, which suggests that the stubborn momentum is over, but the deviation of the advantage is intact.

Looking down, the highest level of December 6 1.0630 will act as the main support zone for the couple. And vice versa, the 1.1000 psychological level will be a key barrier to the euro bulls.