FX.co ★ Euro Little-Changed as Trade War Escalates

The euro remained steady at approximately $1.10, marking its strongest position since early October 2024, amid a weakening dollar and escalating trade war tensions. On Friday, China revealed plans to impose 34% tariffs on all U.S. goods effective from April 10, in retaliation for the broad tariffs initiated by President Trump. In Europe, French President Emmanuel Macron advised businesses to halt U.S. investments, while the European Commission announced that it is preparing its own retaliatory measures. President Trump's latest decision involves implementing a 10% tariff on all imports, with particularly higher rates for certain countries, including a 20% tariff on EU products. As a result, the markets have anticipated a more than 90% probability of a 25 basis points cut by the ECB in April, forecasting the deposit rate to fall to 1.8% by December. This is a downward revision from earlier forecasts of 1.9% and the existing rate of 2.5%.