- EUR/USD has weakened as the US dollar (USD) rebounds from previous technical corrections.
- The European Union has cautioned that Trump’s new proposal to double US tariffs on steel and aluminum could jeopardize trade negotiations.
- The ISM Manufacturing PMI in the US declined from 48.7 in April to 48.5 in May.
EUR/USD is showing a downturn after gaining over 0.50% in the last session, trading around 1.1420 during the Asian market hours on Tuesday. The US Dollar (USD) is regaining its footing despite rising concerns in the market.
Traders are likely keeping an eye on Eurozone data, specifically the Harmonized Index of Consumer Prices (HICP), set to be released later today. Following that, attention will shift to job openings in the US during the North American session.
US President Donald Trump announced plans to double import tariffs on steel and aluminum, increasing concerns among global steel producers and potentially escalating the trade conflict. “We’re going to raise it to 25% and possibly up to 50%. This will further solidify the US steel sector,” he told Reuters.
Additionally, the recent ISM manufacturing survey revealed a dip in the manufacturing sector, with the index falling to 48.5 in May from 48.7 the previous month, which is below expectations of 49.5.
The European Union has expressed “strong” disappointment regarding Trump’s tariff plans, warning that such moves could disrupt ongoing trade negotiations. The European Commission indicated that these tariffs could undermine efforts to reach a favorable agreement.
