Trump's 6 month can kick on auto tariffs - does it put a floor under EUR/USD?

Author: Eamonn Sheridan | Category: News

The overnight news on US President Trump putting off a decision on higher auto tariffs: 

EUR got a boost:  
Some follow up via TD:
  • this delay should help draw a line under potential EURUSD weakness
  • The situation remains highly fluid, but we have long considered a potential pivot in trade conflicts to Europe as one of the greatest near-term downside threats to EUR
  • the region's macroeconomic backdrop has improved in recent weeks
  • "hard data" surprises have turned increasingly positive
  • 6 June ECB meeting is the next major event risk
 For now, 1.1175 (+/-) is a key pivot. Unless a new bearish catalyst emerges, the 26 April low (1.1112) could represent the trough for this cycle.

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