Euro Rises Against US Dollar Amid Escalating Trade Tensions

The euro climbed against the US dollar in the first session of the new trading week, fueled by intensified selling pressure on the American currency amid growing concerns over trade tensions. These concerns have intensified due to multiple factors since the end of last week through the close of Monday’s session.

Currency Movements and Dollar Index Performance

The EUR/USD pair rose to 1.1442, up from the previous day’s close of 1.1347. During the trading session, the pair fluctuated between a low of 1.1345 and a high of 1.1449. Meanwhile, the US Dollar Index (DXY), which measures the dollar’s performance against a basket of major currencies, declined to 98.71 points from the prior close of 99.33 points. The index ranged between a low of 98.71 points and a high of 99.42 points during the week’s opening session.

Trade Tensions Impact Markets

The market’s unease stems from upcoming trade developments, with the US administration setting next Wednesday as the deadline for its trading partners to submit offers for trade agreements. A Reuters report confirmed the existence of a drafted US letter to trading partners, outlining this imminent deadline. Additionally, the Trump administration announced an increase in tariffs on US steel and aluminum imports, raising the aluminum tariff to 50% effective next Wednesday. These moves have heightened uncertainty, contributing to the dollar’s weakness and bolstering the euro’s relative strength as investors reassess global trade dynamics.