How Trump’s Tariffs Shift the Balance for EUR/USD at 1.1145
The EUR/USD currency pair has surged to near 1.1145, marking a significant rally driven by the US Dollar’s weakness. This sharp climb comes after President Trump announced 20% reciprocal tariffs on the Eurozone, sending shockwaves through global markets. The US Dollar Index (DXY) has taken a significant hit, falling to 101.30, its lowest level in six months. Traders have been bracing for a slowdown in the US economy as these tariffs could lead to broader economic consequences. How will this volatile shift impact the Dollar’s status as a safe haven?
What Does the 1.1145 Level Mean for the Euro’s Future Against the Dollar?
The Euro has seen impressive gains as it broke above 1.0955 resistance, a level that had held firm for some time. With the EUR/USD now testing 1.1145, investors are closely monitoring whether the pair can continue this bullish trajectory. The Eurozone’s response, with President Ursula von der Leyen vowing retaliation, could intensify the situation. Given this backdrop, will the Euro’s strength hold, or is this just a temporary spike ahead of further uncertainty in global trade relations?
Is the US Dollar Vulnerable to Further Losses Amid Tariff Tensions and Fed Uncertainty?
Despite positive data, such as the ADP jobs report, the US Dollar has been battered by growing trade war concerns and Fed policy shifts. The market is now pricing in a 70% chance of a Fed rate cut by June, which further weakens the Dollar’s outlook. Can the Greenback rebound, or will continued tariff threats push it to new lows? As US yields fall, what role will the Fed’s stance play in determining whether the Dollar can recover, or if the Euro will continue to outperform?
What’s Next for EUR/USD? Key Levels and Forecasts for the Week Ahead
As EUR/USD rallies near 1.1145, traders are looking to the next major resistance at 1.1200 and watching for potential pullbacks. The RSI at 70 suggests overbought conditions, but with support levels at 1.0903 and 1.0861, the trend remains bullish for now. With US Nonfarm Payrolls and ISM Services PMI data looming, will these reports cement the Euro’s position against a faltering Dollar, or is a reversal imminent?
