EUR/USD Supported as EU Removes Import Duties on US Goods in Trade Deal

EUR/USD is poised for a constructive move as the European Parliament voted to remove import duties on US goods, signaling compliance with the broader EU-US trade deal. This development is particularly significant as it reduces transatlantic trade friction at a time when the eurozone economy faces headwinds from the ongoing Middle East conflict fallout, which is expected to dampen economic activity in the coming months. The legislation still requires approval by the full EU assembly, anticipated around mid-June, though this is widely considered a formality. The trade deal compliance is a net positive for EUR sentiment, as it reduces the risk of retaliatory US tariffs that could have further pressured European exports. For traders, the removal of duties should support bilateral trade flows and provide a modest tailwind for the euro, though geopolitical risks from the Middle East remain a counterbalancing bearish factor. Near-term, EUR/USD traders should monitor developments around the final EU assembly vote and any escalation in Middle East tensions that could shift risk sentiment.