The post EUR/USD gives up some initial gains on further de-escalation in US-China trade war appeared on BitcoinEthereumNews.com.

EUR/USD surrenders some of its early gains as the US Dollar bounces back on improvement in US-China trade relations. Beijing has rolled back non-tariff measures on 45 US entities. The EU is prepared with countermeasures if trade talks with the US fail. EUR/USD gives back half of its intraday gains during European trading hours on Thursday. Still, the major currency pair is 0.2% higher, trading just above 1.1200 at the time of writing. The pair faces selling pressure as the US Dollar (USD) recoups some of its initial losses on further de-escalation in the trade war between the United States (US) and China.  The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, against six major currencies, recovers to near 100.85 from the intraday low of 100.60. During the European trading session, US Treasury Secretary Scott Bessent stated that Washington is going into a “series of negotiations” with China to “prevent escalation” in trade tensions again. The comments from Bessent have increased investors’ confidence that the world’s two largest powerhouses are actively focusing on reaching a trade deal, a scenario that will lift global economic growth. “We [US] now have a mechanism with China counterparts,” Bessent added. Before comments from US Treasury Bessent, Beijing suspended non-tariff measures taken against 45 US entities, which it imposed on April 4 after the imposition of reciprocal tariffs by US President Donald Trump on April 2, Reuters reported. The decision from the Chinese Commerce Ministry came in the wake of the agreement between Washington and Beijing for a 90-day pause in the trade war, in which they lowered tariffs by 115%. Going forward, the next major trigger for the US Dollar will be the speech from Federal Reserve (Fed) Chair Jerome Powell, and the Producer Price Index (PPI) and Retail…

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Filed under: News - @ May 15, 2025 10:25 am