EUR/USD: Fears of EU-US trade dispute may weigh over common currency


  • EUR/USD may come under pressure on fears of US-EU trade war. 
  • President Trump is likely to hit the EU with punitive tariffs, according to Politico. 

EUR/USD may suffer losses in Europe on fears of a bitter confrontation between the European Union (EU) and its close ally US.

EU officials told Politico on Friday that President Trump has won the right to punitive tariffs on the EU products following the US victory in the long-running transatlantic dispute illegal subsidies granted to European aerospace giant Airbus.

Officials said Trump can collect anywhere between a total of between €5 billion and €8 billion, while another said the maximum sum was close to $10 billion.

Germany, already feeling the pinch of the global trade tensions, could suffer big time if Trump imposes tariffs on the EU goods, as feared by some observers. Other European countries such as Ireland, Italy or France have a lot to lose if tariffs are imposed on European goods.

The EUR, therefore, could come under pressure in the European session. As of writing, EUR/USD is trading at 1.1071, having hit a high of 1.1086 in the Asian trading hours.

Also, escalating geopolitical tensions in the middle east could put a bid under the safe haven treasuries and the US Dollar.

Oil prices jumped 20% in the early Asian trading session while Wall Street futures fell after Saturday's attacks on Saudi Arabia's crude facilities knocked out more than 5% of global oil supply.

Yemen's Iran-backed Houthi rebel group claimed responsibility for the attack. A senior US official, however, told reporters on Sunday that evidence indicated Tehran was behind the drone strike.

The risk sentiment may recover, keeping the have demand for treasuries under check if Saudi officials downplay fears of an extended production outage.

Technical levels

EUR/USD

Overview
Today last price 1.1071
Today Daily Change -0.0003
Today Daily Change % -0.03
Today daily open 1.1074
 
Trends
Daily SMA20 1.1054
Daily SMA50 1.1131
Daily SMA100 1.1184
Daily SMA200 1.1261
Levels
Previous Daily High 1.111
Previous Daily Low 1.1056
Previous Weekly High 1.111
Previous Weekly Low 1.0927
Previous Monthly High 1.1251
Previous Monthly Low 1.0962
Daily Fibonacci 38.2% 1.1089
Daily Fibonacci 61.8% 1.1077
Daily Pivot Point S1 1.105
Daily Pivot Point S2 1.1027
Daily Pivot Point S3 1.0997
Daily Pivot Point R1 1.1104
Daily Pivot Point R2 1.1133
Daily Pivot Point R3 1.1157

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.

EUR/USD News

GBP/USD losses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Gold erases daily gains, eyes $1480

Gold failed to hold to gains and pulled back, approaching again the $1480 area. Earlier today the ounce rose to $1488 and as of writing trades at $1483, flat for the day but now with a bearish intraday bias.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Forex MAJORS

Cryptocurrencies

Signatures