EURUSD: SELL 1.1350, SL 1.1450, TP 1.1200 | 15 Abril 2025

EURUSD:

China's Ministry of Finance announced a sharp increase in tariffs on US goods on Friday, raising duties to 125 per cent from 84 per cent. The move was in response to US President Donald Trump's decision a day earlier to raise tariffs on Chinese imports to 145 per cent. Meanwhile, to ease trade friction, the European Union (EU) announced a 90-day suspension of planned retaliatory tariffs, echoing a similar pause by Washington to encourage renewed dialogue.

The U.S. Dollar Index (DXY), which tracks the dollar against a basket of six major currencies, extended its losses for a third straight session, slipping below the 100.00 mark and nearing a three-year low reached on Friday. The continued fall reflects weakening investor confidence amid deteriorating economic data and dovish central bank comments.

The University of Michigan sentiment index fell to 50.8 in April, while annual inflation expectations rose to 6.7 per cent. The US producer price index (PPI) rose 2.7 per cent year-on-year in March, up from 3.2 per cent in February, while the core reading fell to 3.3 per cent. Jobless claims rose to 223,000, although continuing claims fell to 1.85 million, indicating a mixed picture in the labour market.

On Sunday, Minneapolis Fed President Neel Kashkari said on CBS television's Face the Nation programme that the economic impact of Trump's trade war will largely depend on how quickly trade uncertainty is resolved. ‘This is the biggest blow to confidence that I can remember in my 10 years at the Fed - with the exception of March 2020 when COVID first came out,’ Kashkari said.

Trade recommendation: SELL 1.1350, SL 1.1450, TP 1.1200

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