Select Language

EUR/USD rises toward 1.1400 as Trump threated to double import tariffs on steel, aluminum

Breaking news

EUR/USD rises toward 1.1400 as Trump threated to double import tariffs on steel, aluminum

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.02 10:31
EUR/USD rises toward 1.1400 as Trump threated to double import tariffs on steel, aluminum

update 2025.06.02 10:31

  • EUR/USD appreciates as the US Dollar declines following the Trump's announcement of doubling import tariffs on steel and aluminum.
  • Trump said that he is going to increase import tariffs from 25% to 50% to secure the US steel industry.
  • European Commission said that Europe was prepared to retaliate against Trump's plan to increase import tariffs on steel and aluminum.

EUR/USD retraces its recent losses registered in the previous session, trading around 1.1370 during the Asian hours on Monday. The pair appreciates as the US Dollar (USD) struggles as the US Court of Appeals, on Thursday, ruling allowing US President Donald Trump's tariffs to take effect.

On Wednesday, a three-judge panel at the Court of International Trade in Manhattan said that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.

On Friday, President Trump said at a rally in Pennsylvania that he planned to double import tariffs on steel and aluminum to build up pressure on global steel producers and intensify trade war. "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% - the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said, per Reuters.

On Saturday, The European Commission (EC) warned that Europe was all set to hit back President Trump's plan to double tariffs on imported steel and aluminum, escalating the trade fight between two of the world's largest economic powers.

Earlier, President Trump delayed the tariff deadline on imports from the EU from June 1 to July 9. Meanwhile, the Brussels also agreed to accelerate trade talks with the United States to avoid a transatlantic trade war.

Last week, European Central Bank (ECB) Governing Council member Klaas Knot said that the current European inflation outlook is murky, challenging the central bank to engage in direct moves. ECB policymaker François Villeroy de Galhau noted that the "policy normalization in the Euro area is probably not complete."

Euro FAQs

The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.

Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.

Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.


Date

Created

 : 2025.06.02

Update

Last updated

 : 2025.06.02

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD tumbles below 1.14 on US data as trade tensions resurface

EUR/USD retreats after hitting a six-week peak of 1.1454 on Tuesday amid increasing concerns of market participants regarding the trade war ignited by the United States (US). The Greenback's appreciation weighs on the pair, which trades at 1.1379, down 0.52%.
New
update2025.06.04 04:51

British Pound trades flat amid BoE caution, US Dollar recovers modestly

The British Pound (GBP) is trading flat against the US Dollar (USD) on Tuesday, edging slightly lower from its intraday high while remaining within Monday's range.
New
update2025.06.04 04:27

Mexican Peso trades sideways against the US Dollar as US jobs data remains in focus

The Mexican Peso (MXN) is trading in a tight range against the US Dollar (USD) on Tuesday, following the Greenback's recovery from Monday's sell-off.
New
update2025.06.04 04:24

Dow Jones Industrial Average rises as markets hope for trade deals

The Dow Jones Industrial Average (DJIA) rose on Tuesday, bolstered by endless optimism in the tech sector. AI rally frontrunner Nvidia (NVDA) led a chip-based market advance, surpassing Microsoft's market cap for the first time since January.
New
update2025.06.04 04:19

Forex Today: Further US hard data and the BoC meeting grab all the attention

After bottoming out in fresh multi-week troughs, the US Dollar (USD) managed to regain composure and advance markedly on turnaround Tuesday. The recovery, however, did not offset concerns over the impact of Trump's tariffs on the US economy and global trade.
New
update2025.06.04 04:15

Fed's discount rate meeting minutes: Businesses are preparing staff reductions if costs rise

The Federal Reserve's (Fed) discount rate meeting minutes from April 7, 28, and May 8 revealed that policymakers are increasingly uneasy about looming economic impacts, mostly from US trade policy.
New
update2025.06.04 03:25

WTI Crude Oil extends gains as Canada wildfires, geopolitical tensions, and a broadly weaker US Dollar support prices

West Texas Intermediate (WTI) Crude Oil prices continue their upward trajectory on Tuesday, marking the second day of gains. At the time of writing, WTI is hovering near Monday's high, trading around $63.06 per barrel, reflecting a nearly 2% increase on the day.
New
update2025.06.04 02:36

Fed's Goolsbee: We could see a direct tariff effect on prices within a month

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee fell in step with the Fed policymaker crowd on Tuesday, admitting that while things look good right now, policy uncertainty remains elevated at the hands of President Trump's whiplash tariff policies, and the Fed is beginning to brace f
New
update2025.06.04 02:24

Fed's Cook: Tariffs could lead to stagflation environment

Federal Reserve (Fed) Board of Governors member Lisa D. Cook noted on Tuesday that although the US economy appears to be in a healthy place for the time being, the biggest economic threat to stability remains the Trump administration's trade policies.
New
update2025.06.04 02:18

EUR/JPY rebounds off moving average support despite Eurozone inflation miss

The Euro (EUR) has been gaining strength against the Japanese Yen (JPY), traditionally seen as a safe haven, on Tuesday. 
New
update2025.06.04 02:02

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel