EURUSD: Trump’s trade war crosses the Atlantic

You may be sick of hearing about tariffs, but they are currently the catalyst for a huge amount of volatility in the market and a huge amount of trading opportunities.

And now Trump’s trade war has crossed the Atlantic

Today, the European Union announced retaliatory tariffs on approximately €26 billion worth of U.S. goods in response to President Donald Trump's recent increase in tariffs on steel and aluminum imports. Targeted products include Harley-Davidsons, bourbon, and jeans—key American exports that have been caught in previous trade disputes.

The EU has said it remains open to negotiation but has not ruled out further action.

In response, Trump vowed to retaliate, stating, “Of course I’m going to respond.” The daily chart for the EUR/USD shows the pair could fall into a larger corrective decline, given overbought RSI conditions.