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