USD strengthens as US tariffs loom: EUR/USD, USD/CNY in focus
USD has gained momentum across major pairs as US Commerce Secretary Lutnick confirmed $700 billion in tariffs will take effect August 1, with no extensions beyond the deadline. EUR/USD declined 0.2% to 1.0820 while USD/CNY rose 0.4% as markets price in trade war escalation. The announcement contradicts earlier reports suggesting a 3-month extension of the tariff pause with China. Lutnick also warned the EU must open markets to US exports or face 30% reciprocal tariffs, adding pressure on EUR/USD. Safe-haven flows into USD accelerated as traders position for potential global trade disruptions. Technical indicators show EUR/USD testing support at 1.0800, with resistance at 1.0850. A break below 1.0800 could accelerate losses toward 1.0750. The tariff implementation timeline suggests continued USD strength as August approaches, with emerging market currencies particularly vulnerable to trade-related volatility.
Related Symbols:
EURUSD
USDCNY
This is a summary of the original article by Forexlive. To read the complete article, please visit the source website:
Read Full Article at ForexliveNews data provided by Finnhub. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.
