On Monday, the US dollar hovered close to multi-year lows against major peer currencies. The euro also returned to the lower range; the recovery of the US dollar index will also affect the European currency.
UNN reports with reference to Reuters and FXStreet.
Details
The EUR/USD pair accelerated its reversal on Monday. According to Reuters, the dollar is currently falling to multi-year lows. This is due to investors preparing for Donald Trump's tariff deadline.
Most of the US's trading partners expect significantly higher tariffs after the expiration of Trump's 90-day moratorium on reciprocal tariffs, introduced as part of "Liberation Day," on Wednesday
On Sunday, Trump clarified that the new tariff rates would take effect on August 1.
The US President stated that his administration is close to finalizing several trade agreements in the coming days. But Trump said he would name several dozen countries that are receiving letters with new, higher tariffs.
The White House chief also threatened to impose an additional 10% tariff on countries that join the "anti-American" policies of the developing BRICS countries.
Uncertainty over tariffs has particularly negatively affected the risk-sensitive Australian and New Zealand dollars ahead of monetary policy decisions in both countries.
The euro is accelerating its downward trend as investors prepare for the introduction of US tariffs
However, according to FXStreet, growing uncertainty about the prospects for global trade as the July 9 deadline approaches has restored the US dollar's traditional status as a "safe haven" - as of Monday morning.
Meanwhile, the euro returned to the lower range of 1.1700 in the first European trading session. Over the past day, the euro moved slightly below 1.1720.
Correlation studies suggest a deeper euro correction if the US dollar index recovery continues below the key level of 97.00.
Recall
In June, demand for currency almost did not change, and exchange rate fluctuations were moderate. The average official exchange rate of the hryvnia against the dollar slightly weakened, while against the euro it continued to weaken.