EUR/USD holds positive ground near 1.0800 as traders brace for Trump’s tariff announcement

EUR/USD edges higher to around 1.0790 in Wednesday’s early European session.

Trump is set to implement tariffs on US trading partners later on Wednesday.  

Eurozone inflation cooled more than expected in March, supporting the case for the ECB rate cut in March.

The EUR/USD pair trades in positive territory near 1.0790 during the early European trading hours on Wednesday. Mounting worries about the economic impact of US President Donald Trump’s erratic tariff announcements undermine the US Dollar (USD) broadly.

Trump will impose tariffs on US trade partners on Wednesday, adding to already announced duties, triggering confusion and uncertainty. The White House stated that Trump’s forthcoming tariffs will take effect right after they unveil the policies. The concerns over Trump's tariff plans widening the global trade war and triggering an economic slowdown in the United States could weigh on the Greenback and act as a tailwind for the major pair. 

Trump will announce his tariff policies on Wednesday during an event in the White House Rose Garden, his top spokeswoman said. Traders will also keep an eye on the US ADP Employment Change for March, which will be released later on the same day. If the report shows a stronger-than-expected outcome, this could lift the USD against the Euro (EUR).

Across the pond, Eurozone inflation eased as expected last month, adding to already widespread anticipation for another European Central Bank  (ECB) interest rate cut later in April. The preliminary reading of the Harmonized Index of Consumer Prices (HICP) for the Eurozone rose 2.2% YoY in March, compared to 2.3% in February. This reading came in line with the market expectations. The cooler inflation in the Eurozone in March might weigh on the shared currency ahead of the US President Donald Trump’s announcement of reciprocal tariffs.