EUR/USD strengthens above 1.1400 as Trump delayed 50% tariffs on EU to July 9

• EUR/USD drifts higher to around 1.1415 in Monday’s early European session, adding 0.48% on the day.

• Trump delayed 50% tariffs on the EU to July 9, supporting the Euro. 

• ECB’s Stournaras expected a rate cut in June and then a pause. 

The EUR/USD pair gathers strength to near 1.1415 during the early European session on Monday. The Euro (EUR) edges higher against the Greenback as US President Donald Trump extends the deadline for 50% EU tariffs until July 9. Later on Monday, traders will focus on the speeches from the European Central Bank (ECB) President Christine Lagarde and German Bundesbank President Joachim Nagel.

Trump said on Sunday that he agreed to an extension on the 50% tariff deadline on the European Union (EU) until July 9 after a phone call with Commission President Ursula von der Leyen. This, in turn, could underpin the shared currency in the near term. Earlier in April, Trump imposed 20% tariffs on the EU as part of his sweeping “reciprocal tariffs,” before lowering the rate down to 10% for 90 days.

Across the pond, ECB Governing Council member Yannis Stournaras said that the central bank may hold borrowing costs steady for the time being after a likely quarter-point cut next month. Stournaras added that the ECB will continue to monitor a meeting-by-meeting and data-driven approach.

Nonetheless, US trade tariffs and related uncertainty could exert some selling pressure on the EUR. The markets have priced in nearly a 90% possibility of an ECB rate cut on June 5, but have priced in only one additional reduction over the rest of the year, according to Reuters.