EUR/USD gains at US Dollar's expense
In Tuesday's North American session, EUR/USD bounces back from early losses and reaches close to 1.0540. After a shaky start, the main currency pair recovers as the US dollar (USD) gives up its daily gains.
In the early Asian session, the US Dollar Index (DXY), which compares the value of the US dollar to six major currencies, began the day strongly and rose to around 107.50. However, it gave up most of its gains and fell to about 106.200 during North American trading hours.
Following President-elect Donald Trump's vow to increase tariffs on other North American economies from where he believes China has poured illegal drugs into the US, renewed concerns increased the US dollar's (USD) attractiveness in Tuesday's Asian session. In addition to the 60% tariffs he had previously stated during his election campaign, Trump said he would put an extra 10% on China and 25% on Mexico and Canada.
Trump's nomination of veteran hedge fund manager Scott Bessent as Treasury Secretary on Monday sparked a correction in the US dollar that has since continued. As investors expected Bessent to uphold political stability and budgetary restraint in order to achieve the economic program, the USD plummeted.
Technical Analysis: EUR/USD jumps above 1.0500
In Tuesday's North American session, the EUR/USD regains its momentum and rises above 1.0530. At 1.0330, the major currency pair is still holding its short-term low. The daily chart's 72 Exponential Moving Averages (EMAs) are dropping, indicating a downward trend, thus the outlook is still bearish.
The main support will be 1.0330 while looking down.
Conversely, the main obstacle for the Euro bulls will be the high round of 1.0600 on November 20.
In the early Asian session, the US Dollar Index (DXY), which compares the value of the US dollar to six major currencies, began the day strongly and rose to around 107.50. However, it gave up most of its gains and fell to about 106.200 during North American trading hours.
Following President-elect Donald Trump's vow to increase tariffs on other North American economies from where he believes China has poured illegal drugs into the US, renewed concerns increased the US dollar's (USD) attractiveness in Tuesday's Asian session. In addition to the 60% tariffs he had previously stated during his election campaign, Trump said he would put an extra 10% on China and 25% on Mexico and Canada.
Trump's nomination of veteran hedge fund manager Scott Bessent as Treasury Secretary on Monday sparked a correction in the US dollar that has since continued. As investors expected Bessent to uphold political stability and budgetary restraint in order to achieve the economic program, the USD plummeted.
Technical Analysis: EUR/USD jumps above 1.0500
In Tuesday's North American session, the EUR/USD regains its momentum and rises above 1.0530. At 1.0330, the major currency pair is still holding its short-term low. The daily chart's 72 Exponential Moving Averages (EMAs) are dropping, indicating a downward trend, thus the outlook is still bearish.
The main support will be 1.0330 while looking down.
Conversely, the main obstacle for the Euro bulls will be the high round of 1.0600 on November 20.
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