The EUR/USD pair faced challenges in maximizing gains from recent upward trends, fluctuating within a narrow range below 1.0500 during European trading hours on Monday. Simultaneously, the GBP/USD maintained stability near the 1.2600 mark in the early European session. This relative calm in currency movements coincided with a subdued US Dollar, impacted by last Friday's disappointing US Retail Sales data. With US markets closed in observance of Presidents' Day, thin trading conditions are expected to persist.
The US Dollar's current weakness has provided a cushion for the downside of currency pairs like EUR/USD. Meanwhile, an upbeat mood prevails in the market as investors digest the evolving economic policies under the Trump administration. President Trump's recent announcement of tariffs on some of America's trading partners marks the beginning of what is expected to be a series of tariffs imposed over the coming quarters. These measures are likely to stir foreign retaliation, potentially influencing future market dynamics.
As the market adjusts to these developments, it's crucial to note that this article, authored by FXStreet, is not intended as investment advice. The views expressed herein are those of the authors and do not represent the official policy or position of FXStreet or its advertisers.