The recent surge in EUR/USD is largely attributed to the market's reaction to President Trump's announcement of sweeping tariffs on April 2, 2025. These tariffs, initially set at 10% on most U.S. imports and higher for certain countries, were later paused for 90 days for all but China, following significant market backlash . This unpredictability in U.S. trade policy has led to a decline in the U.S. dollar, as investors seek more stable alternatives, thereby boosting the euro
Will EUR/USD Continue to Rise?
While the euro has gained strength due to the dollar's weakness, several factors could influence its future trajectory:
U.S. Economic Outlook: The tariffs have raised concerns about a potential U.S. recession, with some analysts predicting a contraction of 0.3% this year . If these concerns persist, the dollar may continue to weaken, supporting further gains in EUR/USD.
Eurozone Economic Impact: The tariffs are also expected to negatively impact the Euro area GDP growth rate by 0.3%-0.4% in the first year . This could limit the euro's upside potential.
Technical Resistance Levels: EUR/USD faces resistance near the 2025 peak at 1.1145. A break above this level could open the door to the 1.1200 region
Will EUR/USD Continue to Rise?
While the euro has gained strength due to the dollar's weakness, several factors could influence its future trajectory:
U.S. Economic Outlook: The tariffs have raised concerns about a potential U.S. recession, with some analysts predicting a contraction of 0.3% this year . If these concerns persist, the dollar may continue to weaken, supporting further gains in EUR/USD.
Eurozone Economic Impact: The tariffs are also expected to negatively impact the Euro area GDP growth rate by 0.3%-0.4% in the first year . This could limit the euro's upside potential.
Technical Resistance Levels: EUR/USD faces resistance near the 2025 peak at 1.1145. A break above this level could open the door to the 1.1200 region
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EURUSD running 200+ pipsTrade closed manually
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.