EUR/USD steady as EU accepts 10% US tariff proposal

EUR/USD remains stable near 1.0850 as reports emerge that the EU is prepared to accept a flat 10% US tariff rate under certain conditions, removing a key uncertainty for the euro. This development follows Trump's earlier 50% tariff threat aimed at accelerating negotiations. Market participants have already priced in a 10-20% average tariff scenario, explaining the muted reaction to today's news. Business reports confirm they're planning operations around similar tariff assumptions, suggesting current levels are now baseline expectations rather than negative surprises. The resolution of EU-US trade tensions removes a significant downside risk for EUR/USD, which had been weighing on the pair since Trump's election. Technical indicators show the pair consolidating above 1.0800 support, with resistance at 1.0900. Further euro strength depends on ECB policy trajectory and upcoming Eurozone economic data releases.