The EUR/USD currency pair is experiencing renewed selling pressure, trading near 1.2900 in European markets on Monday. This shift comes as traders grapple with uncertainty surrounding United States tariffs, compounded by a pause in the US Dollar's recent downtrend. Market participants are closely examining comments made by President Donald Trump during his weekend interview on Fox News, which added another layer of complexity to the trading landscape.
Despite these pressures, the EUR/USD finds support from an upbeat Eurozone Sentix Investor Confidence index, which improved to -2.9 in March from February's -12.7. This positive data lifted sentiment around the Euro, prompting fresh bids and pushing the pair back up to approximately 1.0850 during Monday's European session. Traders are keenly focused on potential updates regarding US tariffs as the economic calendar remains relatively quiet.
Inflation dynamics are also in focus, with consumer price inflation showing signs of moderation in February after a strong start to 2025. The core index appears to be easing following significant gains in January across several categories. Current estimates suggest a headline Consumer Price Index (CPI) increase of 0.25% and a core index rise of 0.27%, reflecting this cooling trend.
In parallel, gold prices have stabilized, consolidating within a narrow range around $2,900 at the week's onset. This stability indicates a cautious market environment as investors await further clarity on economic policies and global trade developments.
President Trump described the economy as being in a ‘transition’ phase, a statement that has sparked varied interpretations among market watchers. This adds to the cautious sentiment prevailing among traders as they navigate the unpredictable landscape.
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