EUR/USD holds losses near 1.1400 due to easing tariff tensions between US, China

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • EUR/USD depreciates as the US Dollar advances amid easing US-China tariff tensions.

  • US Commerce Secretary Howard Lutnick said that the United States and China reached a framework to implement the Geneva Consensus.

  • The US Court of Appeals extended a temporary stay, allowing the government to continue enforcing Trump’s sweeping tariffs.

EUR/USD loses ground after registering gains in the previous two consecutive sessions, trading around 1.1400 during the Asian hours on Wednesday. The pair depreciates as the US Dollar receives support from easing tariff tensions between the United States (US) and China.

US Commerce Secretary Howard Lutnick suggested, on Tuesday, potential resolutions with China and noted that both countries have reached a framework to implement the Geneva Consensus. While China’s Vice Commerce Minister Li Chenggang said that communication with the United States has been rational and candid, he will report on a framework to Chinese leaders. However, officials from both sides will seek approval from their leaders before implementation, according to Bloomberg.

US Treasury yields are holding steady as traders adopt caution ahead of the upcoming inflation data. The CPI report is expected to provide insight into the economic impact of recent tariffs and broader inflationary trends. 2-year and 10-year yields on US Treasury bonds are standing at 4.01% and 4.46%, respectively, at the time of writing.

Last week, the European Central Bank (ECB) delivered a 25 basis point rate cut and brought borrowing costs to their lowest since November 2022. Moreover, the central bank also revised down its inflation projections for 2025 and 2026, indicating that it is nearing the end of its current easing cycle.

ECB policymaker Olli Rehn said on Tuesday, “We will take decisions meeting by meeting.” Must avoid complacency over inflation outlook. Must focus on keeping inflation expectations at 2%, Rehn added. ECB’s Francois Villeroy de Galhau noted that “we will remain pragmatic going forward on rates.” Villeroy also said that the central bank will go according to the data flow and be as agile as necessary.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/JPY Price Forecast: Trades below 169.00 after pulling back from eleven-month highsEUR/JPY halts its three-day winning streak, trading around 168.80 during the Asian hours on Tuesday. According to the technical analysis of the daily chart, the currency cross attempts to break above the ascending channel pattern, strengthening the bullish bias.
Author  FXStreet
6 Month 24 Day Tue
EUR/JPY halts its three-day winning streak, trading around 168.80 during the Asian hours on Tuesday. According to the technical analysis of the daily chart, the currency cross attempts to break above the ascending channel pattern, strengthening the bullish bias.
placeholder
EUR/USD reclaims 1.1600 as US Dollar’s safe-haven appeal diminishesThe EUR/USD pair posts a fresh weekly high to near 1.1610 during late Asian trading hours on Tuesday. The major currency pair strengthens as the US Dollar (USD) has faced a sharp sell-off, following the announcement of the Israel-Iran ceasefire by United States (US) President Donald Trump.
Author  FXStreet
6 Month 24 Day Tue
The EUR/USD pair posts a fresh weekly high to near 1.1610 during late Asian trading hours on Tuesday. The major currency pair strengthens as the US Dollar (USD) has faced a sharp sell-off, following the announcement of the Israel-Iran ceasefire by United States (US) President Donald Trump.
placeholder
EUR/USD Price Forecast: Tests nine-day EMA barrier near 1.1500 due to bullish biasEUR/USD extends its winning streak for the fourth successive session, trading around 1.1490 during the Asian hours on Monday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.
Author  FXStreet
6 Month 23 Day Mon
EUR/USD extends its winning streak for the fourth successive session, trading around 1.1490 during the Asian hours on Monday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.
placeholder
EUR/USD extends losses as geopolitical tensions sour market sentimentThe EUR/USD pair is extending its reversal from last week's highs on Thursday, weighed by investors' aversion to risk, as fears of an escalation of the Israel-Iran war into a regional conflict have overshadowed the Federal Reserve's (Fed) monetary policy decision.
Author  FXStreet
6 Month 19 Day Thu
The EUR/USD pair is extending its reversal from last week's highs on Thursday, weighed by investors' aversion to risk, as fears of an escalation of the Israel-Iran war into a regional conflict have overshadowed the Federal Reserve's (Fed) monetary policy decision.
placeholder
EUR/USD holds positive ground near 1.1500 ahead of Fed rate decisionThe EUR/USD pair attracts some buyers to around 1.1500 during the Asian trading hours on Wednesday. A slew of downbeat US economic data weigh on the Greenback. However, escalating Israel-Iran tensions might cap the upside for the major pair.
Author  FXStreet
6 Month 18 Day Wed
The EUR/USD pair attracts some buyers to around 1.1500 during the Asian trading hours on Wednesday. A slew of downbeat US economic data weigh on the Greenback. However, escalating Israel-Iran tensions might cap the upside for the major pair.
Real-time Quote