{"id":14335,"date":"2025-04-08T01:23:59","date_gmt":"2025-04-08T01:23:59","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?p=14335"},"modified":"2025-04-08T01:23:59","modified_gmt":"2025-04-08T01:23:59","slug":"eur-usd-drops-as-us-delays-tariffs-for-90-days-forex-market-reacts","status":"publish","type":"post","link":"https:\/\/lotayamedia.xyz\/?p=14335","title":{"rendered":"EUR\/USD Drops as US Delays Tariffs for 90 Days \u2013 Forex Market Reacts"},"content":{"rendered":"

The\u00a0EUR\/USD<\/strong>\u00a0pair fell during Monday\u2019s trading session, dropping near\u00a01.0880<\/strong>\u00a0before recovering slightly to\u00a01.0940<\/strong>, still down\u00a00.25%<\/strong>\u00a0as the\u00a0US Dollar (USD)<\/strong>\u00a0strengthened. The move followed reports that the\u00a0US may pause new tariffs<\/strong>\u00a0for 90 days on most trading partners\u2014excluding China\u2014easing immediate trade war fears but keeping forex markets volatile.<\/p>\n

\n

Why Is EUR\/USD Falling? US Tariff Delay Boosts Dollar<\/strong><\/h3>\n

The\u00a0USD gained strength<\/strong>, pushing the\u00a0EUR\/USD exchange rate lower<\/strong>, after Reuters reported that\u00a0President Trump is considering a 90-day tariff delay<\/strong>\u00a0for key allies. While the White House hasn\u2019t confirmed the plan, the potential pause could give nations time to negotiate and avoid steep import duties.<\/p>\n

    \n
  • US Dollar Index (DXY) rose to 103.20<\/strong>, reinforcing USD demand.<\/li>\n
  • Trump\u2019s earlier tariff threats had rattled markets<\/strong>, but a delay could stabilize trade tensions.<\/li>\n
  • JP Morgan warned US GDP could shrink 0.3%<\/strong>\u00a0if full tariffs were imposed.<\/li>\n<\/ul>\n
    \n

    Trump\u2019s Trade War Comments & Fed Rate Cut Pressure<\/strong><\/h3>\n

    President Trump dismissed market concerns over tariffs, stating:<\/p>\n

    “Sometimes you have to take medicine to fix something.”<\/em><\/p><\/blockquote>\n

    He also urged the\u00a0Federal Reserve (Fed) to cut interest rates<\/strong>, claiming:<\/p>\n

      \n
    • Oil and food prices are down<\/strong><\/li>\n
    • No inflation risks<\/strong><\/li>\n
    • US earning billions from existing tariffs<\/strong><\/li>\n<\/ul>\n

      However,\u00a0Fed Chair Jerome Powell warned<\/strong>\u00a0that tariffs could\u00a0spur inflation and slow growth<\/strong>, keeping rates steady at\u00a04.25%-4.50%<\/strong>\u00a0for now.<\/p>\n

      \n

      ECB Rate Cut Expectations Weigh on Euro (EUR)<\/strong><\/h3>\n

      The\u00a0Euro\u2019s decline<\/strong>\u00a0was also driven by:<\/p>\n

        \n
      • ECB signals more rate cuts<\/strong>\u00a0\u2013 Traders expect another reduction on\u00a0April 17<\/strong>, possibly lowering rates to\u00a02.25%<\/strong>.<\/li>\n
      • Weak Eurozone retail sales<\/strong>\u00a0\u2013 Only\u00a00.3% growth in February<\/strong>\u00a0(below forecasts).<\/li>\n
      • ECB\u2019s Schnabel warns of “dramatic uncertainty”<\/strong>\u00a0from US tariffs.<\/li>\n<\/ul>\n
        \n

        EUR\/USD Technical Analysis: Key Levels to Watch<\/strong><\/h3>\n
          \n
        • Support:<\/strong>\n
            \n
          • 1.0886 (10-day EMA)<\/strong><\/li>\n
          • 1.0850 (March 31 high)<\/strong><\/li>\n<\/ul>\n<\/li>\n
          • Resistance:<\/strong>\n
              \n
            • 1.0938 (November 5 high)<\/strong><\/li>\n
            • 1.1214 (September 25 peak)<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

              The\u00a0RSI remains above 60<\/strong>, suggesting bullish momentum could return if the pair holds support.<\/p>\n

              \n

              EU Seeks Tariff Negotiations \u2013 Will It Help EUR\/USD Recover?<\/strong><\/h3>\n

              The\u00a0European Commission is pushing for trade talks<\/strong>, offering\u00a0“zero tariffs on cars and industrial goods”<\/strong>\u00a0to avoid a full-blown trade war. If negotiations progress, the\u00a0EUR\/USD pair could stabilize<\/strong>.<\/p>\n

              \n

              Forex Outlook: Will the Dollar Keep Rising?<\/strong><\/h3>\n
                \n
              • Short-term:<\/strong>\u00a0USD strength may continue if tariff delays ease economic fears.<\/li>\n
              • Long-term:<\/strong>\u00a0More ECB rate cuts could keep the\u00a0Euro under pressure<\/strong>.<\/li>\n<\/ul>\n

                Traders will watch:
                \n\u2714\u00a0Fed & ECB policy signals<\/strong>
                \n\u2714\u00a0US-EU trade negotiations<\/strong>
                \n\u2714\u00a0Key technical levels (1.0850-1.1214 range)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                The\u00a0EUR\/USD\u00a0pair fell during Monday\u2019s trading session, dropping near\u00a01.0880\u00a0before recovering slightly to\u00a01.0940, still down\u00a00.25%\u00a0as the\u00a0US Dollar (USD)\u00a0strengthened. The move followed reports …<\/p>\n","protected":false},"author":1,"featured_media":14336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-14335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14335"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14335\/revisions"}],"predecessor-version":[{"id":14337,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14335\/revisions\/14337"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/14336"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}