- In what has shaped up to be a bearish day for the dollar so far, there is further supply coming in for the greenback and EUR/USD has popped 15 pips to the upside from 1.1685.
- Trump and EU’s Juncker’s meeting gets underway with deescalating trade war pre-meeting statements crossing the wires.
There has been a lack of trend in EUR/USD over the past 72 hours of trade with the pair ranging between 1.1654 and 1.1716 leading into a handful of data events between the US and EU and today’s trade talks meeting between Trump and European Commission President Jean-Claude Juncker.
The meeting follows the US announcement tariff measures in early March of 25% and 10% respectively on steel and aluminum for its trading partners. Casting minds back, the EU retaliated by imposing tariffs on popular US goods to a total of USD 3.2 billion and both sets of sanctions are currently in effect. Leading into today’s event, there were escalating threats of further tariffs from both sides with the Trump seeking to impose a further 20% on EU-made imported vehicles while the EU said it was currently drawing up a new list of US products it could potentially tax in retaliation making today’s meeting crucial for both blocs as an initial exchange of primary views.
Donald Trump began by complimenting Jean-Claude Juncker
So far, we have heard that Donald Trump began by complimenting Jean-Claude Juncker on the way he represents EU citizens. “We are looking for a fair trade deal, and hopefully we can sort something out,” Trump told reporters at the White House. Trump then claimed that America has been losing “hundreds of billions of dollars” to the EU over recent years, “because it runs a trade deficit with Europe. We just want a level playing field for American companies and farmers…Something that’s good for everybody, that’s what we are going to discuss,” Trump said. the European Commission president Jean-Claude Juncker declared that America and Europe are “friends, not enemies’, as he sat down with Trump for talks on trade.
EUR/USD levels
Analysts at Commerzbank argued that it’s hard to characterize short-term price action – “such as it is – as anything but neutral at the moment,” they said:
“While we think longer run signals may be suggestive of some relief from downward pressure for the EUR (and feel that the 1.1500/10 provides a firm base for the EUR now), intraday signals are essentially trendless. There is some residual upside momentum evident on the intraday DMI studies but we note decent EUR resistance at 1.1720 and 1.1750 while support stands at 1.1680 and 1.1650/55. Outside of these range extremes should see a little more movement but while ranges hold, we look for more sideways chop.”
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