EUR/USD drifts higher to near 1.0950 in Thursday’s early European session, up 0.85% on the day.
Trump said the EU will face a 20% under the new Trump policy.
Traders await the US March ISM Services PMI report for fresh impetus, which is due later on Thursday.
The EUR/USD pair climbs to around 1.0950 during the early Asian session on Thursday. The Greenback edges lower against the Euro (EUR) after US President Donald Trump announced more aggressive-than-expected tariffs against US trading partners.
Trump plans to impose a 20% tariff on EU goods and higher duties on some of the country's biggest trading partners. The tariffs will take effect on April 9. The European Commission President, Ursula von der Leyen, on Thursday slammed Trump’s imposition of tariffs on EU goods and vowed to retaliate. Worries about the impact of an escalating global trade war and a slew of weaker-than-expected US data raise the fear of a sharp global economic slowdown in the US, which drags the USD lower broadly.
Fed Governor Adriana Kugler said on Wednesday that rising tariffs in the US could feed into more prolonged inflation than might be expected. Kugler said that she supported keeping the current interest rate steady as long as these upside risks to inflation continue. Traders await the US weekly Initial Jobless Claims, the final S&P Global Services PMI, and the ISM Services PMI. If the reports show stronger-than-expected outcomes, these could lift the USD and create a tailwind for EUR/USD.
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