EUR/USD: Euro Swings to One-Month High Above $1.14 on Trump’s Tariff Backpedalling

First it was June 1, but then two days later it changed to July 9 — how the tariff deadline had markets sloshing billions around.

💪 Tariff Delay Fuels Euro Rally

• The EURUSD pair spiked to a one-month high above $1.1400 on Tuesday after US President Trump postponed his proposed 50% tariffs on EU imports from June 1 to July 9.
• The delay sent a wave of relief through currency markets, prompting traders to pile out of the dollar and into the euro, fueling a nearly 1% intraday rally, which ended up losing steam as the European session advanced.
• The euro climbed as high as $1.1418 but then pared back those gains and skittered down under the $1.14 handle, threatening to walk back the daily pop and slide under the flatline.

🥴 Billions in Motion on a Whim

• Friday’s shock tariff announcement had investors hedging for an EU-US trade war, only for the Monday flip-flop to force a major repositioning across global FX desks.
• The reversal was also seen across European bourses with the pan-continental STOXX 600 SXXP adding 1% to its valuation. US equities were closed for Monday trading due to the Memorial day holiday.
• Analysts warned that this kind of political volatility — especially when it’s between two big trading partners — is driving whiplash across risk assets and FX pairs alike.

👀 What’s Next for Euro-Dollar?

• With the euro now trading near April highs, the next technical ceiling is seen around $1.1480, with momentum indicators flashing some more room to the upside.
• The dollar, meanwhile, is struggling to regain its footing amid uncertainty about US policy direction and inflation implications from trade disruption.
• Until July 9 arrives — or another Trump update hits the wire — expect more choppy trading sessions and headline-driven swings in the euro-dollar pair.