EUR/USD holds at 1.1686 despite Trump's 30% tariff threats

EUR/USD demonstrated resilience Monday, trading at 1.1686 after briefly touching a three-week low of 1.1651, as markets appeared to discount Trump's latest 30% tariff threats. The euro's ability to recover from initial weakness suggests traders are betting the former president may moderate his stance, similar to previous instances. Market positioning indicates skepticism about the implementation of such aggressive trade measures, with the pair finding support near the 1.1650 level. The muted reaction contrasts with typical tariff-related volatility, reflecting either market fatigue with trade war rhetoric or confidence in institutional pushback against extreme protectionist policies. Near-term resistance sits at 1.1700, while sustained breaks below 1.1650 could accelerate downside toward 1.1600. Traders should monitor any clarification on trade policy stance and upcoming ECB communications for directional cues.