EUR/USD churned the charts near 1.0850 on Monday.
Markets are drawing into the midrange as investors await Trump tariffs.
European inflation update due on Wednesday, US NFP labor data dump on Friday.
EUR/USD flubbed a bullish run at the 1.0850 level on Monday, kicking off the new trading week on decidedly tepid footing. Investors are preparing for the newest round of tariff threats from US President Donald Trump. The Trump administration plans to implement a broad range of tariffs affecting nearly all of the US’s trading partners starting April 2. While the specific details of these tariff strategies remain unclear, major threats include “reciprocal” tariffs on any country that imposes its own import tariffs on US products, irrespective of the economic situation. Additional retaliatory tariffs on Canada and the European Union are also anticipated, alongside proposed blanket tariffs on copper and automobiles.
European inflation figures will be updated this week, with preliminary Harmonized Index of Consumer Prices (HICP) inflation slated for a Wednesday release. Not much change is expected on the pan-EU inflation front, with price pressures remaining stubbornly stable but delivering few surprises in 2025.
On the American side, a fresh print of US Nonfarm Payrolls (NFP) labor figures are due later this week. This NFP release could be a major datapoint for markets as the US economy heads into a post-tariff economic environment, with March’s labor data set to act as a “bellwether” for the impacts of the Trump team’s tariff plans.
EUR/USD price forecast
EUR/USD continues to trade in the middle of a technical trap, with buyers unable to take a firm leg higher, but short pressure too limited to push Fiber price action back under the 200-day Exponential Moving Average (EMA) just south of the 1.0700 handle.
EUR/USD snapped a near-term losing streak, pushing technical oscillators into oversold territory, but a continuation pattern remains unlikely as market participants focus on geopolitical factors.
EUR/USD daily chart
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