EUR/USD tests resistance as trade talks and ECB decision loom
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EUR/USD tests key resistance as the ECB rate decision and policy outlook come into focus. US-EU trade talks near breaking point ahead of tariff deadline; US Dollar weakens. EUR/USD recovers above the descending trendline from the July high to trade near 1.1700 at the time of writing. EUR/USD is trading marginally higher on Tuesday as investors continue to monitor developments in trade and economic policy. With the Euro (EUR) remaining in a longer-term uptrend against the US Dollar (USD), EUR/USD is trading above 1.1700 at the time of writing. With the Federal Reserve (Fed) currently in a blackout period ahead of the July 30 rate decision, focus has now shifted to ongoing trade tensions. These factors have recently provided a tailwind for the EUR/USD pair despite Europe’s own economic concerns. US-EU trade talks near breaking point ahead of tariff deadline Trade tensions between the European Union and the United States remain fragile. With the August 1 tariff deadline swiftly approaching, trade negotiations have reached a critical stage. With talks currently underway in Brussels and Washington, markets are growing increasingly weary. July 22–23 meetings mark the final working-group window ahead of the hard deadline. If negotiations break down, the EU is preparing a package of retaliatory tariffs targeting key American exports, including digital services, aerospace products, and bourbon. This wouldn’t offset the impact from the 30% tariff rate threatened by US President Donald Trump. However, it could continue to weigh on the US Dollar as more nations fail to solidify a deal that benefits both counterparts. Moreover, sector-specific tariffs, such as those imposed on autos, steel, and aluminium, remain in effect. These have already been creeping into economic data releases, bringing this week’s agenda back into focus. ECB rate decision and policy outlook in focus as EUR/USD tests key levels Focus for…
Filed under: News - @ July 22, 2025 9:28 pm