EURUSD: SELL 1.1220, SL 1.1240, TP 1.1140 | 12 May 2025

EURUSD:

EUR/USD slid to lows on Thursday, losing just over two-thirds of a per cent from the day's open after the US dollar (USD) traded broad market momentum following the preliminary announcement of an impending trade deal between the United States (US) and the United Kingdom (UK). It appears that Europe is still in a relationship with the Trump administration as White House officials continue to warn EU countries to ‘not retaliate’ against US import taxes.

The US-UK trade deal will allow the United Kingdom to bypass the high ‘reciprocal’ tariffs that are due to be reinstated on 9 July, after President Trump temporarily postponed his ‘Emancipation Day’ tariffs. However, there are still plans to impose 10 per cent tariffs on all imports from the UK to the US, which could dampen market sentiment soon. The Trump administration has completely suspended tariffs on important imports such as refined ethanol. Data suggests that the US has not imported refined ethanol from the UK in at least 15 years.

Trading recommendation: SELL 1.1220, SL 1.1240, TP 1.1140

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