EUR/USD eyes rare earth crisis as EU-US coordinate against China

EUR/USD holds steady near 1.0950 as markets digest implications of potential G7 coordination on rare earth supply chains. European Trade Commissioner Maros Sefcovic announced imminent G7 finance minister discussions addressing China's rare earth export restrictions, marking a 'critical concern' for Western economies. The coordinated response could strengthen transatlantic economic ties, potentially supporting both currencies against the yuan. China controls approximately 60% of global rare earth production and 90% of processing capacity, giving it significant leverage in technology and defense supply chains. Market participants are monitoring whether joint action could lead to increased USD/EUR stability through shared economic security measures. Technical indicators show EUR/USD consolidating between 1.0920 support and 1.0980 resistance. A successful G7 agreement could reduce supply chain vulnerabilities and support risk sentiment, potentially lifting both currencies against safe havens.