On Monday, the currency market experienced some interesting and significant movements. The EUR/USD pair showed fantastic strength as it traded within an ascending channel pattern. In the early European session, the pair moved slightly lower to around 1.1765. On the other hand, it keeps the bullish bias intact as long as it trades above the key support of 1.1750.
Traders are specifically looking at the Euro and how they’re performing against the US Dollar. Recent comments from US Treasury Secretary Bessent have raised their hackles even more. He indicated that former President Trump would send letters to several trading partners, warning that tariffs could revert to April 2 levels starting August 1. This announcement has injected a new simmering layer of uncertainty into the market, weighing on trader sentiment and driving down currency valuations.
For the most part, the GBP/USD currency pair has struggled over the past few sessions. After breaking below the nine-day Exponential Moving Average (EMA), GBP/USD tumbled towards the psychological level of 1.3600. The sensitive currency pair extended losses for a second consecutive session. During the Asian hours on Monday, it was trading near the 1.3620 handle. The British Pound is certainly under persistent pressure and this move down illustrates that perfectly. It is particularly sensitive to wider market trends and economic indicators.
As the trading week progresses, market participants will be keen to observe how geopolitical factors and economic indicators influence currency movements. EUR/USD maintains a strong bullish momentum above 1.1750. On the other hand, GBP/USD is struggling back above 1.3600. Traders need to be on their toes and continue to adapt their approaches accordingly.