Euro Faces Pressure Amid U.S. Tariff Prospects And Inflation Data

According to Odaily, analysts from ING, including Chris Turner, have indicated that the euro is likely to face challenges due to potential U.S. tariffs and rising inflation data expected this week. U.S. President Donald Trump recently announced plans to impose tariffs on the European Union, which Turner suggests could push the euro/dollar exchange rate back to 1.0225. The U.S. inflation report, set to be released on Wednesday, is considered another potential negative factor for the exchange rate. Following the release of strong U.S. employment data last Friday, the interest rate differential between the U.S. and the Eurozone has widened, which is expected to continue to negatively impact the euro. However, if the euro withstands the pressures from tariff risks and U.S. inflation data, it might see an increase. This potential rise could be influenced by the Munich Security Conference, starting Friday, where more details on a U.S.-proposed ceasefire agreement for Ukraine might be revealed.