Jul 15, 2025
The dollar rises slightly while the euro declines following Trump's warning about EU tariffs.
The U.S. dollar gained slightly on Monday while the euro fell after President Donald Trump threatened a 30% tariff on imports from the European Union, though the fluctuations were relatively small.
As of 05:30 ET (09:30 GMT), the Dollar Index, which measures the dollar against six other currencies, increased by 0.1% to 97.577, marking a nearly 2% rise over the previous week, the largest weekly increase since early December.
Following Trump's tariff announcement, the dollar appreciated, but the movements were subdued compared to the drastic sell-off that occurred after April’s "Liberation Day" declaration.
ING analysts noted that investors perceive these threats as a negotiating strategy by Washington to compel the EU to agree to a deal, suggesting that they expect improved agreements by the August 1 deadline and do not foresee a repeat of April's market turmoil.
This week, other factors could influence the dollar, such as the release of the June U.S. CPI data on Tuesday and potential new sanctions on Russia. Analysts at ING warned to watch for secondary sanctions on countries purchasing Russian oil, which could boost energy prices benefiting the U.S. dollar while negatively affecting major energy importers in Europe and Asia.
The euro fell to a three-week low, with EUR/USD decreasing by 0.1% to 1.1683 after Trump’s tariff threat. European Commission President Ursula von der Leyen called the tariffs unfair and disruptive but stated that the EU would extend its suspension of countermeasures to U.S. tariffs until early August while seeking a negotiated resolution.
ING indicated that those waiting for better rates to buy EUR/USD may be rewarded, as U.S.-EU trade negotiations are expected to become more contentious, challenging expectations that the EU would secure a 10% tariff rate on most goods.
GBP/USD fell by 0.2% to 1.3476, hitting a two-week low due to ongoing selling after last week's data indicated that the U.K. economy contracted for a second consecutive month in May.
Investors appear to have a more pessimistic outlook on sterling, likely due to the fiscal limitations facing U.K. Chancellor Rachel Reeves.
In Asian trading, USD/JPY rose by 0.1% to 147.21, while USD/CNY was mostly unchanged at 7.1682, as investors remained cautious amidst multiple U.S. trade tariff announcements and positive trade data from China.
Chinese data showed that the country's trade surplus exceeded expectations in June, driven by stronger-than-anticipated exports following mutual tariff reductions with the U.S.
As of 05:30 ET (09:30 GMT), the Dollar Index, which measures the dollar against six other currencies, increased by 0.1% to 97.577, marking a nearly 2% rise over the previous week, the largest weekly increase since early December.
Following Trump's tariff announcement, the dollar appreciated, but the movements were subdued compared to the drastic sell-off that occurred after April’s "Liberation Day" declaration.
ING analysts noted that investors perceive these threats as a negotiating strategy by Washington to compel the EU to agree to a deal, suggesting that they expect improved agreements by the August 1 deadline and do not foresee a repeat of April's market turmoil.
This week, other factors could influence the dollar, such as the release of the June U.S. CPI data on Tuesday and potential new sanctions on Russia. Analysts at ING warned to watch for secondary sanctions on countries purchasing Russian oil, which could boost energy prices benefiting the U.S. dollar while negatively affecting major energy importers in Europe and Asia.
The euro fell to a three-week low, with EUR/USD decreasing by 0.1% to 1.1683 after Trump’s tariff threat. European Commission President Ursula von der Leyen called the tariffs unfair and disruptive but stated that the EU would extend its suspension of countermeasures to U.S. tariffs until early August while seeking a negotiated resolution.
ING indicated that those waiting for better rates to buy EUR/USD may be rewarded, as U.S.-EU trade negotiations are expected to become more contentious, challenging expectations that the EU would secure a 10% tariff rate on most goods.
GBP/USD fell by 0.2% to 1.3476, hitting a two-week low due to ongoing selling after last week's data indicated that the U.K. economy contracted for a second consecutive month in May.
Investors appear to have a more pessimistic outlook on sterling, likely due to the fiscal limitations facing U.K. Chancellor Rachel Reeves.
In Asian trading, USD/JPY rose by 0.1% to 147.21, while USD/CNY was mostly unchanged at 7.1682, as investors remained cautious amidst multiple U.S. trade tariff announcements and positive trade data from China.
Chinese data showed that the country's trade surplus exceeded expectations in June, driven by stronger-than-anticipated exports following mutual tariff reductions with the U.S.