The EUR/USD pair climbed toward 1.1750 during Thursday’s Asian session, rebounding from earlier losses as the US Dollar weakened following key developments in US monetary policy and trade tensions.
The move comes after the release of the Federal Open Market Committee (FOMC) minutes from the June 17–18 meeting, which showed that most Fed officials anticipate a rate cut could be appropriate later this year. They noted that the inflationary effects of tariffs might be limited and short-lived. Despite some lingering concerns over trade, fiscal, and geopolitical risks, policymakers acknowledged a slight easing in overall uncertainty since the previous meeting.
Adding to USD pressure, President Donald Trump announced a fresh wave of tariffs, including a 50% levy on Brazilian imports and new duties ranging from 20% to 30% on goods from countries like Algeria, Iraq, Libya, Sri Lanka, and the Philippines, set to take effect in August.
However, the Euro found further support after reports confirmed that the European Union (EU) would not face additional US tariffs. EU trade commissioner Maros Sefcovic indicated that talks with Washington were progressing well and that a trade deal could be finalized in the coming days. He also noted that an extended negotiation deadline would allow more time to iron out remaining issues.
