EUR/USD rises to near 1.1750 due to uncertainty over Fed rates, tariff concerns

• EUR/USD gains ground as the US Dollar weakens amid renewed tariff concerns.
• Trump's new letters detail individual tariff rates ranging from 20% to 50% on eight countries, taking effect starting August 1.
• The Euro advances following the news of the White House not targeting the EU with additional tariffs.

EUR/USD appreciates after registering mild losses in the previous session, trading around 1.1730 during the Asian hours on Thursday. The pair appreciates as the US Dollar (USD) loses ground following the latest Federal Open Market Committee (FOMC) Meeting Minutes and developments on US tariffs.

FOMC Minutes from the June 17-18 meeting, released on Wednesday, indicated most Federal Reserve (Fed) officials considered a reduction in the fed funds rate likely to be appropriate at some point this year, noting that upward pressure on inflation from tariffs may be temporary or modest.

Meanwhile, Fed policymakers highlighted that uncertainty about the monetary policy outlook was elevated due to trade policy, other government policies, and geopolitical risks, but that overall uncertainty had diminished since the previous meeting.

US President Donald Trump unveiled on Wednesday a new round of tariff demand letters, including a 50% rate on Brazil, a 30% rate on Algeria, Libya, Iraq, and Sri Lanka, and a 20% rate on goods from the Philippines, which are set to hit in August, per Bloomberg.

The EUR/USD pair also receives support from the news of the White House not targeting the European Union (EU) with additional tariffs, and that it could secure some exceptions to the baseline rate of 10%. EU trade chief Maros Sefcovic stated on Wednesday that good progress had been made to reach a framework trade agreement with the United States (US), suggesting a deal could be reached, potentially even in the coming days. Sefcovic also added that the extended deadline offers additional time to conclude negotiations.