EUR/USD Falls as US Dollar Gets Stronger Before Tariff Deadline
The EUR/USD pair has gone down after touching a two-week high. It dropped to around 1.1730, pulling back from 1.1760.
The US dollar became stronger after the U.S. announced a big trade deal with Japan. This made investors more confident in the dollar. At the same time, talks between the US and the European Union (EU) are moving slowly, which is worrying the market.
A major tariff deadline is coming on August 1. If no deal is made, the US may add new tariffs on EU goods. The EU might also respond, which could increase trade tensions. These fears are making traders buy more US dollars, pushing down the Euro.
People are also watching the European Central Bank (ECB) meeting closely. The ECB is expected to keep interest rates the same, but traders want to hear what they say about the economy. Any sign of support from the ECB could help the Euro.
Even though EUR/USD is falling, it is still holding above the important support level near 1.1720. That means the uptrend might not be over yet.
Impact :
EUR/USD might stay under pressure if trade talks fail or tariffs begin. But if the ECB or Federal Reserve hints at rate cuts, the Euro could possibly recover.