— EUR/USD reached approximately 1.0820 during North American trading on Wednesday, supported by a decline in the US Dollar ahead of President Trump’s tariff announcement. The US Dollar Index (DXY) fell to around 104.00. The announcement of tariffs is anticipated to negatively impact the US economy, with the ISM Manufacturing PMI showing contraction in March. Business activity has deteriorated, leading to decreased demand and company reductions. Trump’s tariffs may disrupt global trade, making imported goods less competitive and slowing down global business investment. US Treasury Secretary Scott Bessent indicated that the tariffs will be the highest imposed, with potential for targeted countries to negotiate relief.

Tariff Impacts And Market Reaction

ADP Employment Change data for March showed a rise of 155,000 jobs, exceeding the predicted 105,000. The Canadian Dollar saw the strongest exchange rate against the US Dollar today. Despite expectations that the EU may incur higher tariffs, EUR/USD continues to rise. Hefty tariffs could adversely affect the Eurozone’s economic prospects, with estimates suggesting a potential 0.5% reduction in growth. Eurostat reported slower growth in the core HICP at 2.4%, below expectations. ECB President Christine Lagarde expressed optimism about managing inflation, though further measures may be needed.

European Response And Inflation Outlook

The situation could deteriorate if the EU responds with countermeasures. European Commission President Ursula von der Leyen stated that potential responses are being considered to address US tariffs. EUR/USD remains within Tuesday’s range at around 1.0800, with support from the 20-day EMA at 1.0778. The December 6 high at 1.0630 serves as a key support level, while 1.1000 is identified as a resistance point. Trump plans to unveil extensive tariffs termed “Liberation Day,” which could greatly influence global trade dynamics. اکنون تجارت را شروع کنید – برای ایجاد حساب VT Markets زنده خود اینجا را کلیک کنید