{"id":23378,"date":"2025-07-14T09:15:25","date_gmt":"2025-07-14T09:15:25","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23378"},"modified":"2025-07-14T09:15:25","modified_gmt":"2025-07-14T09:15:25","slug":"euro-falls-to-3-week-low-as-trump-ramps-up-tariffs","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/it-eu\/analysis\/euro-falls-to-3-week-low-as-trump-ramps-up-tariffs\/","title":{"rendered":"Euro falls to 3-week low as Trump ramps up tariffs"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-1024x536.png\" alt=\"\" class=\"wp-image-23380\" srcset=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-300x157.png 300w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-768x402.png 768w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-500x262.png 500w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-400x209.png 400w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-350x183.png 350w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11-200x105.png 200w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/11.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The euro is under pressure as fresh US tariffs reignite global trade tensions, adding uncertainty to the currency markets. This analysis covers the key developments, their impact on EUR\/USD, and the technical levels to watch next.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Euro dips on tariff tensions<\/strong><\/h2>\n\n\n\n<p>The euro slipped to its lowest level in three weeks against the US dollar early Monday, retreating to 1.1659.<\/p>\n\n\n\n<p>The drop followed US President Donald Trump\u2019s renewed escalation of global trade disputes through the announcement of sweeping new tariffs.<\/p>\n\n\n\n<p>A proposed 30% levy on imports from both the European Union and Mexico added to a series of aggressive trade measures targeting long-standing allies.<\/p>\n\n\n\n<p><\/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><\/p>\n\n\n\n<p>Set to come into effect on 1 August, the new tariffs prompted a modest reaction across currency markets.<\/p>\n\n\n\n<p>While the broader response was muted, the EUR\/USD pair \u2013 already trading within a tight range for several weeks \u2013 was pressured lower by the revived uncertainty.<\/p>\n\n\n\n<p>Officials from the EU and Mexico described the proposed tariffs as \u201cunjustified\u201d and \u201cdisruptive,\u201d though neither bloc has introduced retaliatory measures as of yet.<\/p>\n\n\n\n<p>The European Commission stated it would maintain its current suspension of tariffs until early August, hinting at efforts to de-escalate the situation diplomatically.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>US CPI and Fed stance in focus for EUR\/USD outlook<\/strong><\/h2>\n\n\n\n<p>The spotlight now turns to Tuesday\u2019s US Consumer Price Index (CPI) release, a key data point that could shape the direction of EUR\/USD.<\/p>\n\n\n\n<p>Market expectations are for a slight rise in core inflation, which may shift sentiment around future Federal Reserve actions.<\/p>\n\n\n\n<p>Currently, futures markets suggest around 50 basis points of easing by December, despite Fed Chair Jerome Powell resisting <a href=\"https:\/\/finance.yahoo.com\/news\/its-not-political-waller-again-calls-for-rate-cut-in-july-reinforcing-fed-divide-170533220.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"political pressure for interest rate cuts\">political pressure for interest rate cuts<\/a>.<\/p>\n\n\n\n<p>Over the weekend, President Trump reiterated his criticism of Powell, even suggesting his resignation \u2013 raising fresh questions over the central bank\u2019s independence.<\/p>\n\n\n\n<p>A stronger-than-expected CPI print could push the EUR\/USD below 1.1659, with rising US yields likely to boost the dollar.<\/p>\n\n\n\n<p>On the other hand, a softer reading could offer some relief for the euro, especially if it coincides with a rebound in market risk appetite.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis<\/strong><\/h2>\n\n\n\n<p>The EUR\/USD pair is currently hovering around 1.1665 after breaching the key support level at 1.1670\u2014the lowest mark in three weeks \u2013 amid renewed concerns over US trade policy.<\/p>\n\n\n\n<p>A failed attempt to break above 1.1700 preceded the move lower, and the price action is now reflecting waning bullish momentum.<\/p>\n\n\n\n<p>Short-term moving averages (5-, 10-, and 30-period) have flattened and are beginning to slope downwards, hinting at a possible trend reversal.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"443\" src=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-1024x443.jpeg\" alt=\"\" class=\"wp-image-23379\" srcset=\"https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-1024x443.jpeg 1024w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-300x130.jpeg 300w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-768x332.jpeg 768w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-500x216.jpeg 500w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-400x173.jpeg 400w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-350x151.jpeg 350w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11-200x87.jpeg 200w, https:\/\/www.vtmarkets.com\/it-eu\/wp-content\/uploads\/sites\/20\/2025\/07\/image-11.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: EUR\/USD tests 1.1650 support amid tariff uncertainty, as seen on the <a href=\"https:\/\/apps.apple.com\/us\/app\/vt-markets-online-trading\/id1372647263\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Meanwhile, the MACD is showing fading bullish momentum, with a slight bearish bias beginning to emerge \u2013 indicating increasing downward pressure.<\/p>\n\n\n\n<p>Resistance remains firm at 1.1700\u20131.1740, underpinned by the 50-day SMA and recent highs.<\/p>\n\n\n\n<p>Immediate support is found at 1.1650, with deeper levels around 1.1600 and 1.1560 (aligned with the 200-day SMA).<\/p>\n\n\n\n<p>A confirmed break below 1.1650 could attract further selling interest, while a decisive reclaim of 1.1700 might open the door for another attempt at the 1.1740\u20131.1750 zone.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>EUR\/USD at a key juncture<\/strong><\/h2>\n\n\n\n<p>In the days ahead, traders will closely monitor the US CPI data release (scheduled for 15 July), ongoing tariff developments, and any new commentary from the European Central Bank.<\/p>\n\n\n\n<p>A weak inflation reading or a softening in trade tensions could fuel a euro recovery.<\/p>\n\n\n\n<p>Conversely, stronger US data or heightened risk-off sentiment may continue to favour the dollar, keeping pressure on the EUR\/USD pair.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro is under pressure as fresh US tariffs reignite global trade tensions, adding uncertainty to the currency markets. This analysis covers the key developments, their impact on EUR\/USD, and the technical levels to watch next. Euro dips on tariff tensions The euro slipped to its lowest level in three weeks against the US dollar <a href=\"https:\/\/www.vtmarkets.com\/it-eu\/analysis\/euro-falls-to-3-week-low-as-trump-ramps-up-tariffs\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":23380,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-23378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts\/23378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/comments?post=23378"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/posts\/23378\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/media\/23380"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/media?parent=23378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/categories?post=23378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/it-eu\/wp-json\/wp\/v2\/tags?post=23378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}