EUR/USD softens around 1.1705 in Wednesday’s Asian session.
US President Trump said he would impose a 50% tariff on imported copper.
Traders brace for the FOMC Minutes due later on Wednesday.
The EUR/USD pair tumbles to near 1.1705 during the Asian trading hours on Wednesday. The Euro (EUR) weakens against the Greenback as renewed tariff threats from US President Donald Trump unsettle markets. Traders await the FOMC Minutes, which will be released later on Wednesday.
Trump broadened his global trade war by threatening a 50% tariff on copper imports and signaled that he might impose levies on semiconductors and pharmaceuticals. Trump noted on Tuesday that trade talks have been going well with the European Union (EU) and China, though he added he is only days away from sending a tariff letter to the EU. Tariff uncertainty and fears of a trade war could undermine the riskier assets like the Euro in the near term.
Investors will closely monitor the US Federal Reserve's (Fed) latest meeting minutes, due later on Wednesday. This report could offer some hints about potential interest rate reductions amid the Fed's wait-and-see approach.
The Fed last month left the key borrowing rate unchanged, keeping fed funds at the same range between 4.25% and 4.5% where it’s been since December. The markets are now expecting 50 basis points (bps) worth of Fed rate reductions by the end of this year, starting in October.
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