The euro/the US dollar is weakened as investors turned into a safe fleet before Trump’s tariff

• EUR/USD is sharply decreased to approximately 1.0780 after release of the initial HICP data in the euro area in March.
• Inflation grows in the euro area faster in March of the month, but it cools on an annual basis.
• Participants in the market are mixed with whether Trump’s tariff will lead to recession in the United States.

Euro/dollars He refuses to nearly 1.0780 during the trading session in North America on Tuesday. The main currency pair is declining while the US dollar (USD) is fixed before issuing mutual definitions by US (United States) President Donald Trump on Wednesday. The US dollar is gaining land although the market participants expect Trump’s tariff to provide economic shocks because local importers will bear the burden of high prices.

White House aides formulated a proposal imposed a tariff of about 20 % on most imports of the United States, according to the Washington Post.

Investors expect that Trump’s economic policies can also lead to stagnation in the United States. Souk participants’ confidence in the risk of recession escalated after a large number of American officials, including President Donald Trump, has escalated in the possibility of economic damage when asked whether the new policies could lead to recession.

Meanwhile, Goldman Sachs for Investment Banking Services also reviewed its chances of potential stagnation to 35 %, increasing its previous 20 % expectations. The upward review of the recession risks was based on a “sharp deterioration in family confidence and business.”

Crystalina Georgive, the administrative director of the International Monetary Fund (IMF), also indicated in an interview with Reuters, the next newspaper maker on Monday that Trump’s push to impose mutual definitions has created a greater amount of uncertainty and confidence, but he excluded fears of stagnation. Georgiviva said that the International Monetary Fund does not see a “dramatic influence” of the definitions that Trump has slapped and threatened to date.

On the Economic Front, investors are waiting for a wide range of data related to the commercial market and the market, which will affect the market expectations for the FBI’s monetary policy expectations. On Tuesday’s session, investors will pay close attention to the USS & PLOBAL and ISM (PMI) session for the month of February, which will be published during the North American session.

Daily Digest Market Mark: EUR/USD slices after release of inflation data in the euro area

• Euro/US dollar decreases sharply after a preliminary release The euro area Consumer Prices Coordinator Index (HICP) for March and unemployment rate in the euro area for February.
• In 12 months to March, HICP in the euro area increased by 2.2 %, as expected, slower than the increase by 2.3 % in February. In the same period, the basic HICP grew by 2.4 % compared to 2.5 % expectations and the previous version by 2.6 %. On a monthly basis, the main address and the basic HICP – which excludes volatile elements such as food, energy, alcohol and tobacco – increased by 0.6 % and 1 %, respectively. The unemployment rate slowed to 6.1 % in February of the previous version and 6.2 % estimates. Soft inflation data in the euro area is expected to force the European Central Bank officials (ECB) to reduce interest rates again on April 17.
• To go ahead, the euro’s main operator (EUR) will be the detailed mutual tariff plan by US President Trump, which will show a new set of import duties in the euro area. Market participants expect that Trump will announce a large number of customs tariff measures on the eurozone, where the President blamed the European Union (EU) to adopt unfair trade practices against the United States. The fresh definitions of Donald Trump will be inflated and weaker for growth on the common continent.
• Announcing a 25 % tax on foreign car imports and light trucks in the United States, which will become valid on Wednesday, forced participants in the financial market already to review their growth expectations for Germany, given that 13 % of the country’s total car exports are taken by the United States.
• The European Commission (EC) has prepared pre -antibiotic measures to respond to the new Trump Group expected from the definitions, according to EC Ursula von der leyen president during the European trading hours on Tuesday. “We do not necessarily take revenge, but if that is necessary, we have a strong plan to do so, and we will use itVon der Lin said, adding that we have the ability to “retreat against customs tariffs.”
• on monday, European Central Bank President Christine Lagarde He said in an interview with France Radio Inter that she sees it on April 2, which was described as a “liberation day” by Trump, as a moment in which we must decide together to bear “better control of our destiny” and a step towards independence.

Technical analysis

Euro/dollars It is nearly 1.0780 against the US dollar on Tuesday. However, in the near term Expectations The pair is still fixed because it maintains the average SIA movement for 20 days (EMA), which trades around 1.0776.

The relative strength index cools for 14 days (RSI) to less than 60.00, indicating that the upscale momentum has ended, but the bullish bias is sound.

Looking down, the highest level on December 6 of 1.0630 will serve as the main support area of ​​the husband. On the contrary, the psychological level of 1.1000 will be the main barrier of euro bulls.