EUR/USD explored the low end once again on Thursday, testing 1.1200.
Greenback market flows are on the high side after a pending US-UK trade deal announcement.
The trade deal announcement has yet to be made official, but investors are hoping for further tariff walkbacks.
EUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK). Europe still appears to be on the outs with the Trump administration, with White House officials continuing to warn the pan-EU continent to “not retaliate” against US import taxes.
The US-UK trade deal would allow the UK to evade high “reciprocal” tariffs that are set to reinstate on July 9, after President Trump temporarily postponed his own ‘Liberation Day’ tariffs. However, a broad 10% tariff remains planned for all imports from the UK into the US, which may dampen market sentiment soon. The Trump administration has fully suspended tariffs on significant imports like refined ethanol. Data indicates that the US has not imported refined ethanol from the UK for at least 15 years.
EUR/USD price forecast
EUR/USD has found an interim bottom just above the 1.1200 handle, but price action continues to struggle to gain a firm foothold on the 1.1300 region. Fiber has eased from multi-month highs posted just north of 1.1500, but downside momentum remains limited as Euro traders await key market developments before pushing too hard in either direction.
EUR/USD daily chart
* 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.
