EUR/USD slides below 1.1700 as tariff fears enhance the dollar to a 2-week level

EUR/USD Loss The first week loss within three weeks, ending at 1.1688.
Trump eyes general tariffs, including EU and copper exports.
Dollar is the strongest week from March among the wide tone of risk.

EUR/USD ended a week with losses of over 0.70% and ended the Friday session by 0.10% of trade below 1.1700, strengthening the case of withdrawal to test key levels of support, because Greenback publishes the best week for four months. At the time of writing, the couple trade at 1.1688.

The risk mood was caused by US President Donald Trump, who remains focused on expanding the tariffs to countries, but also on goods such as copper. Messages have appeared that he can impose general tariffs and that its monuments are set on the list to the European Union (EU), which publishes the first weekly loss in the last three weeks.

A delicate economic document on both sides of the Atlantic was the federal reserve officials (Fed) in the media, as well as wholesale prices for June, was revealed in Germany.

Daily Digest Market Movers: Euro under pressure as Trump Grounds is to send an EU tariff letter

The euro was on the defensive, because press reports revealed the intention to send a letter to the EU. In addition, he introduced 35% of the Tariffs to Canada and it was reported that he was looking at the vocabulary tariffs from 15% to 20%, signaling the escalation of the trade war.
Chicago President Austan Goologe (voter in 2025) said that the recent round of tariffs makes it sloppy to reveal real economic results. He said that the tariffs can delay the cutting of the rate and that he wants to wait until the fear dies before the convenience that the US returns to a cushioned landing.
On the other side of the pond, officials of the European Central Bank (EBC) revealed mixed positions on monetary policy. Schnabel was Jastrzębia, stating that “a bar for another rate reduction is very high” and rejecting the need to further alleviate, unless inflation materially deviates from 2% of the EBC target in the medium period – something that he currently does not see evidence.
EBC Fabio Panetta was a bit talkative, noting that if the risk of growth and strengthened disinflation pressure may require further monetary alleviation.
Wholesale prices in Germany increased in June by 0.2% of mom, as expected, crushing -0.3% of the inheritance. Annual prices increased from 0.4% to 0.9% in the same period.

Technical prospects for euro: EUR/USD fall below 1.1700 as Sellers Eye 1.1500

EUR/USD broke below the number 1,1700, but it remains on a 20-day straight movable medium (SMA) 1.1662. Although it jumped to the current price levels, the couple stays below 1.1700, pave the road to further decline.

The first support would be 20-day SMA. After exceeding, the next stop would be 1.1650, followed by the 50-day SMA at 1.1464.

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 significant 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 robust 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 tender, 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.