- EUR/USD drops by 0.44% to 1.1718, reaching six -day lowest levels 1.1686 before a modest reflection.
- Trump puts 25-40% of tariffs to South Korea, Japan, Malaysia and others.
- Reuters: EU released from the latest tariff wave, helping to recover EUR/USD.
- German industrial production slight improvement in May.
EUR/USD fell on Monday during the North American session among the risk impulse, courtesy of escalation in the trade war, when US President Donald Trump began sending letters with tariffs imposed on some countries. This increased the American dollar to the detriment of the common currency, which trades at 1.1718, which is a decrease of 0.44%.
Trump announced a 25% tariffs for all Korean and Japanese products imported to the USA. In addition, he applied duties in Malaysia, Kazakhstan, Myanmar, Laos and South Africa in the range of 25% to 40%. When the headlines were known, EUR/USD fell to the lowest level within six days by 1.1686.
However, Reuters revealed that the European Union (EU) will not receive a letter specifying higher tariffs than the USA, which has increased EUR/USD over 1.1700 to the current exchange rate.
Meanwhile, the American economic document remains absent on Monday and Tuesday. Traders look at the release of the June Federal Committee on the Open Market (FOMC). In the EU, German data on industrial production for Maja showed a slight improvement, as the German Federal Statistical Office revealed.
Euro price today
The table below shows the percentage change in the euro (EUR) in relation to the main currencies. The euro was the strongest in relation to the Australian dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.63% | 0.40% | 1.34% | 0.58% | 1.07% | 1.12% | 0.63% | |
| EUR | -0.63% | -0.21% | 0.46% | -0.07% | 0.50% | 0.49% | -0.00% | |
| GBP | -0.40% | 0.21% | 0.66% | 0.16% | 0.73% | 0.71% | 0.09% | |
| JPy | -1.34% | -0.46% | -0.66% | -0.52% | -0.06% | 0.01% | -0.64% | |
| BOOR | -0.58% | 0.07% | -0.16% | 0.52% | 0.50% | 0.54% | -0.08% | |
| Aud | -1.07% | -0.50% | -0.73% | 0.06% | -0.50% | 0.09% | -0.62% | |
| NZD | -1.12% | -0.49% | -0.71% | -0.01% | -0.54% | -0.09% | -0.61% | |
| CHF | -0.63% | 0.00% | -0.09% | 0.64% | 0.08% | 0.62% | 0.61% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose the euro on the left column and go along the horizontal line to the American dollar, the percentage shift displayed in the field will represent the EUR (base)/USD (quote).
Daily Digest Market Movers: . Dollar strengthens the risk mood; Euro is subject to
- Greenback strength presses on EUR/USD. The American dollar index (DXY), which follows the BUCK value in relation to the six currencies basket, increased by 0.56% at 97.53.
- He sent the White House in total 7 Letters to the following countries, with appropriate tariffs: South Korea (25%), Japan (25%), Malaysia (25%), Kazakhstan (25%), Laos (40%), South Africa (30%) and Myanmar (40%). These fees will be applied on August 1.
- US President Donald Trump said that the rates did not cover “sectors specific tariffs.” Meanwhile, the White House announced that the 90-day deadline set on April 2 of the Liberation Day was extended to August 1.
- According to the EU spokesman, Olof Gill EU stated that there had been some progress under the Framework Trade Agreement with the United States (USA). He pointed out that Ursula von der Leyen called Trump on Sunday, saying that “they had a good exchange.”
- German industrial production in May increased more than expected, increased by 1.2% MOM, exceeding 0% forecasts. Every year it improved from 1.6% from April to 1% expansion. Franziska Palmas, senior European economist at Capital Economics, said: “In German industrial production with better than German industrial production, they are partly due to the further tariff in the pharmaceutical sector.”
Euro technical perspectives: EUR/USD declines, Eye 1.1700
EUR/USD edges below on the daily chart, threatening to print the recent seven-day lowest level below 27 June 27 on June 27, which is 1.1680, which can neat the way to challenge 1.1650 and 20-day straight movable medium (SMA) at 1.1622. The next minus is evident at 1,1600.
The relative force indicator (RSI) suggests that buyers lose their shoot because RSI rapidly raises the neutral level.
And vice versa, if EUR/USD stays above 1.1700, the next key resistance would be 1.1750, sign 1.1800 and year on year (YTD) of 1.1829.
FAQ euro
The euro is the currency of 19 European Union countries, which belong to the euro area. This is the second most frequently commercial currency in the world behind the American dollar. In 2022, it accounted for 31% of all currency transactions, with an average daily turnover of over USD 2.2 trillion per day. EUR/USD is the most rotating currency pair in the world, which is about a 30%discount on all transactions, followed by EUR/JPy (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (EBC) in Frankfurt, Germany is a bank reserve bank. EBC sets interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means either controlling inflation or stimulating growth. Its main tool is to enhance or reduce interest rates. Relatively high interest rates – or waiting for higher feet – will usually bring the benefits of the euro and vice versa. The ECB Managing Council makes decisions regarding monetary policy at meetings taking place eight times a year. Decisions are made by the heads of national banks of the euro area and six constant members, including the President of EBC, Christine Lagarde.
Data on inflation in the euro area, measured by a harmonized consumer price indicator (HICP), are an vital econometric for the euro. If inflation increases more than expected, especially if it is above the target 2% EBC, it obliges EBC to raise interest rates to restore it to control. Relatively high interest rates compared to its counterparts will usually benefit the euro, because it makes the region more attractive as a place for global investors to park their money.
The data release the health of the economy and can affect the euro. Indicators such as GDP, PMI production and services, surveys regarding employment and consumer moods can affect the direction of the common currency. A powerful economy is good for the euro. It not only attracts more foreign investment, but can encourage EBC to set interest rates, which will directly strengthen the euro. Otherwise, if economic data is faint, the euro will probably fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are particularly significant because they constitute 75% of the euro area economy.
Another significant issue of data for the euro is the commercial balance. This indicator measures the difference between what the country earns on exports and what spends on imports in a given period. If the country generates a highly sought after export, its currency will gain value only from additional demand created by foreign buyers trying to buy these goods. Therefore, a positive net trade balance strengthens currency and vice versa for a negative balance.
