{"id":26371,"date":"2025-07-14T07:21:36","date_gmt":"2025-07-14T07:21:36","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=26371"},"modified":"2025-07-14T07:21:36","modified_gmt":"2025-07-14T07:21:36","slug":"euro-hits-3-week-low-amidst-trumps-tariff-blitz","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/euro-hits-3-week-low-amidst-trumps-tariff-blitz\/","title":{"rendered":"Euro Hits 3-Week Low Amidst Trump\u2019s Tariff Blitz"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx-80-1024x559.png\" alt=\"\" class=\"wp-image-20946\" \/><\/figure>\n\n\n\n<p><strong>Key Highlights<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EUR\/USD touches 1.1659\u2014lowest in three weeks<\/li>\n\n\n\n<li>Trump targets EU and Mexico with 30% tariffs starting August 1<\/li>\n\n\n\n<li>Traders await U.S. CPI and Fed policy cues<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The euro slipped to a three-week low against the dollar early Monday, sliding to <strong>1.1659<\/strong>, after U.S. President Donald Trump reignited global trade tensions with the announcement of <strong>sweeping new tariffs<\/strong>. Trump proposed a <strong>30% tariff on imports from both the European Union and Mexico<\/strong>, adding to a week of aggressive trade actions targeting long-standing allies and economic partners.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">EU-US tariff negotiations enter a new phase after Trump&#39;s latest curveball <a href=\"https:\/\/t.co\/SKcHOCG46W\">https:\/\/t.co\/SKcHOCG46W<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1944623558291857635?ref_src=twsrc%5Etfw\">July 14, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The move, set to take effect on <strong>August 1<\/strong>, sent a mild ripple through currency markets\u2014though the initial reaction was relatively muted. Still, for EUR\/USD, which has already been treading water in a narrow range for weeks, this renewed uncertainty proved enough to nudge the pair lower.<\/p>\n\n\n\n<p>Both the EU and Mexico called the new tariffs \u201cunjustified\u201d and \u201cdisruptive,\u201d but <a href=\"https:\/\/t.co\/bzlnWwR6in\" target=\"_blank\" rel=\"noopener\" title=\"\">refrained from any immediate countermeasures<\/a>. The European Commission confirmed it would <strong>extend its current tariff suspension<\/strong> until early August, signalling an attempt to de-escalate the situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">U.S. CPI, Fed Outlook Could Decide EUR\/USD Trajectory<\/h2>\n\n\n\n<p>Attention now shifts to <strong>Tuesday\u2019s U.S. Consumer Price Index (CPI)<\/strong> release. Markets anticipate a <strong>marginal pickup in core inflation<\/strong>, which could influence expectations for Federal Reserve policy in the months ahead.<\/p>\n\n\n\n<p>At present, <strong>Fed funds futures<\/strong> price in roughly <strong>50 basis points of easing<\/strong> by December, though Fed Chair <strong>Jerome Powell<\/strong> has <a href=\"https:\/\/t.co\/iDQB2lFuuN\" target=\"_blank\" rel=\"noopener\" title=\"\">pushed back on political pressure for rate cuts<\/a>. On Sunday, Trump doubled down\u2014<strong>suggesting Powell should step down<\/strong>, once again casting a shadow over the central bank\u2019s independence.<\/p>\n\n\n\n<p>If Tuesday\u2019s inflation print surprises to the upside, EUR\/USD could break down below the 1.1659 level, as higher U.S. yields support the dollar. Conversely, a softer reading may provide the euro some breathing room, especially if risk appetite returns<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>EUR\/USD is currently trading around 1.1665 after dipping below the critical 1.1670 support\u2014the lowest level seen in three weeks\u2014driven by renewed U.S. tariff tensions. After rejecting a move above 1.1700, price reversal comes as the 5\u2011, 10\u2011, and 30\u2011period moving averages have flattened and turned slightly lower, indicating diminished bullish momentum. The MACD shows fading green momentum bars and a subtle bearish bias, pointing to increased downside pressure.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-11.jpg\" alt=\"\" class=\"wp-image-26373\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\">Picture: EUR\/USD tests 1.1650 support amid tariff uncertainty, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/p>\n\n\n\n<p>Key levels remain intact: resistance near 1.1700\u20131.1740, reinforced by the 50\u2011SMA and recent high. Immediate support sits at 1.1650, followed by deeper zones at 1.1600 and 1.1560 (200\u2011SMA). A break and hold below 1.1650 could invite sellers toward 1.1600, whereas reclaiming 1.1700 with conviction would pave the way for a retest of 1.1740\u20111.1750.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">EURUSD at a Crossroads<\/h2>\n\n\n\n<p>In the coming days, key drivers include U.S. CPI (July 15), tariff news, and any ECB statements. Weak U.S. CPI or easing trade rhetoric could prompt a rebound. Conversely, a strong dollar from risk-off sentiment or higher U.S. inflation may extend the euro&#8217;s pullback.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>EUR\/USD faces downside pressure ahead of U.S. CPI and Fed policy expectations. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[56,10],"class_list":["post-26371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-euro","tag-forex"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26371"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20946"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}