EUR/USD Under Pressure as EU Caves on Trade Deal, Fires Top Official

EUR/USD faces renewed bearish pressure following reports that the European Commission has fired Sabine Weyand, its Director-General for Trade, in the aftermath of a trade deal with the Trump administration. The personnel shakeup signals a significant shift in EU trade policy, with the bloc having accepted a 15% tariff rate rather than retaliating with counter-tariffs — a move widely seen as capitulation given the EU's economic size and negotiating leverage. The decision undermines confidence in the euro as it suggests the EU prioritized stability over assertiveness, potentially setting a precedent for future trade negotiations. Markets are interpreting the dismissal as an acknowledgment that the EU's trade strategy was poorly executed, raising questions about the bloc's ability to defend its economic interests. For EUR/USD traders, the development adds a layer of political risk that could weigh on the euro in the near term. Key support levels around 1.0800 should be monitored, with resistance near 1.0900. Traders should watch for further EU policy signals and any retaliatory rhetoric that could shift sentiment.