EUR/USD currency pair faced robust bearish pressure for the second consecutive week. It capped the week just under 1.0820, ending about where it started with not much wiggle. Market-related conditions, such as tariff-related anxieties and weak US economic data have played a role in this trend that seems to be never-ending. Despite the US Dollar typically being a safe haven, its status has been recently eroded. These developments are dramatically and fundamentally changing the game for the EUR/USD pair.
To begin the week, international tariff negotiations kept the US Dollar veiled. At the same time, lackluster domestic economic indicators only intensified the pressure. Combined, these factors have stymied its attraction as a safe-haven asset, one usually flocked to by investors in times of turmoil. Specifically, the upward trading range of the EUR/USD currency pair has been impacted. That’s meant to continue high selling pressure these last two weeks.
The EUR/USD single currency pair has been one of the best trades lately, trading within a bearish channel. It finished the week just shy of 1.0820. Continuous selling pressure demonstrates the market’s strength remained weak. These conditions are quite sensitive to the Euro- US Dollar exchange rate trade-offs. Now, tariff-related issues are turning that investor sentiment upside down. Consequently, the EUR/USD pair is very sensitive to changes in perceptions on the security of the US Dollar.
All this tariff-related angst has been a key factor in driving the recent surge in the US Dollar. These issues have driven down its value considerably. Beyond that, they’ve eroded gold’s role as a safe haven, arguably its most important function in times of unchecked market turbulence. And lackluster US economic data has compounded these effects. This has seriously undermined investor confidence and impacted the value of the EUR/USD exchange rate.