EUR/USD slides below 1.1700 as tariff fears lift Dollar to 2-week high

• EUR/USD posts first weekly loss in three weeks, ending at 1.1688.
• Trump eyes blanket tariffs, including on EU and copper exports.
• Dollar marks strongest week since March amid broad risk-off tone.

EUR/USD finished the week with losses of over 0.70% and ended Friday's session down 0.10% trading below the 1.1700 figure, cementing the case for a pullback to test key support levels as the Greenback posts its best week in four months. At the time of writing, the pair trades at 1.1688.

A risk-off mood was triggered by US President Donald Trump, who remains focused in broadening tariffs to countries but also to commodities like copper. News emerged that he could be imposing blanket tariffs and that his sights are set on a letter to the European Union (EU), which posts its first weekly loss in the last three weeks.

A light economic docket on both sides of the Atlantic featured media appearances of Federal Reserve (Fed) officials, alongside Wholesale Prices data for June, revealed in Germany.

Daily digest market movers: Euro pressured as Trump threats to sent EU's tariff letter

• The Euro was on the defensive as news reports revealed Trump's intention to send a letter to the EU. In addition to this, he enacted 35% tariffs on Canada, and it is reported that he is eyeing blanket tariffs of 15% to 20%, signaling an escalation of the trade war.
• Chicago Fed President Austan Goolsbee (voter in 2025) said that the new round of tariffs makes it messy to reveal the true economic performance. He said that tariffs could delay rate cuts and that he wants to wait until the anxiety dies down before being comfortable that the US is back on track to a soft landing.
• Across the pond, European Central Bank (ECB) officials revealed mixed stances on monetary policy. Schnabel was hawkish, stating that "the bar for another rate cut is very high" and dismissing the need for further easing unless inflation materially deviates from the ECB's 2% target over the medium term -- something she currently sees no evidence of.
• ECB Fabio Panetta was slightly dovish, noting that if the downside risks to growth intensified and reinforced disinflationary pressures, it could require further monetary easing.
• Wholesale Prices in Germany rose by 0.2% MoM in June as expected, crushing May´s -0.3% fall. Yearly, Prices jumped from 0.4% to 0.9% for the same period.

Euro technical outlook: EUR/USD tumbles below 1.1700 as sellers eye 1.1500

The EUR/USD cracked below the 1.1700 figure yet it remains on top of the 20-day Simple Moving Average (SMA) of 1.1662. Although it bounced to current price levels, the pair staying below 1.1700, paves the way for further downside.

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