The XRP news priceEUR/USD pair is showing weakness as the US Dollar regains strength through technical adjustments.
Potential trade disruptions loom as new US tariff proposals threaten EU negotiations.
Recent US manufacturing data indicates continued contraction, adding to economic uncertainty.
The EUR/USD currency pair is currently trading lower around 1.1420 during Asian trading hours, following a previous session where it gained more than 0.50%. This downward movement occurs despite increasing worries about stagflation in the US economy, with market participants focusing on upcoming Eurozone inflation figures. The Harmonized Index of Consumer Prices (HICP) data release is particularly anticipated, along with the JOLTS Job Openings report scheduled for later in the North American session.
Recent developments in US trade policy have created additional market volatility. The administration's announcement of plans to significantly increase tariffs on steel and aluminum imports has raised concerns about potential impacts on global trade relations. These proposed measures, which would effectively double current tariff rates, are seen as an attempt to strengthen domestic industries while potentially escalating trade tensions.
Economic indicators from the US manufacturing sector have contributed to the current market sentiment. The latest ISM Manufacturing PMI reading showed a decline to 48.5 in May, marking the third consecutive month of contraction. This weaker-than-expected performance has added to concerns about the broader economic outlook, influencing currency market dynamics.
European officials have responded critically to the proposed US tariff increases, expressing concerns about the potential disruption to ongoing trade negotiations. The European Commission has indicated that such measures could jeopardize current discussions and potentially lead to responsive actions, creating additional uncertainty in financial markets.