US markets remain closed today in observance of Presidents' Day, while significant economic developments emerge from the Trump administration. Monday's European trading saw the EUR/USD pair oscillating in a narrow range below 1.0500. President Donald Trump has announced new tariffs on some of America's trading partners, signaling a shift in the country's economic policies.
The imposition of these tariffs marks the initial phase of Trump's emerging economic strategy. More tariffs are anticipated in the coming quarters, prompting expectations of foreign retaliation that may mirror these US measures. This development unfolds amid a subdued US Dollar, primarily due to Friday's disappointing Retail Sales data. The weakness of the US Dollar is providing some support to the EUR/USD pair, cushioning its downside.
In the foreign exchange market, the GBP/USD pair is trading near 1.2600 during the early European session on Monday. This movement is also buoyed by the subdued action of the US Dollar. The lackluster performance of the US Dollar follows the release of underwhelming Retail Sales data last Friday, which has contributed to its current weakness against major currencies.
Market analysts observe that these currency movements reflect broader economic sentiments influenced by recent policy announcements. The tariffs introduced by the Trump administration are expected to have far-reaching implications for global trade dynamics. As these policies take shape, market participants are closely monitoring potential retaliatory actions from affected trading partners.
It is important to note that the views and opinions expressed in this article belong solely to the authors and do not necessarily represent the official stance of FXStreet or its advertisers. Furthermore, both the author and FXStreet are not registered investment advisors, and this article is not intended to offer investment advice.