EUR/USD Holds Losses Near 1.1400 Ahead of Eurozone HICP Inflation Data

EUR/USD Holds Losses Near 1.1400 Ahead of Eurozone HICP Inflation Data

By tredu.com6/3/2025

Tredu

US Dollar reboundEurozone inflationEUR/USD
EUR/USD Holds Losses Near 1.1400 Ahead of Eurozone HICP Inflation Data

EUR/USD Holds Losses Near 1.1400 Ahead of Eurozone HICP Inflation Data

EUR/USD pares previous gains and trades near 1.1400 during Tuesday’s Asian session as the US Dollar recovers from earlier losses on a technical rebound. Despite concerns over US stagflation, the dollar finds support ahead of key data releases.

Markets await the Eurozone Harmonized Index of Consumer Prices (HICP) inflation data, expected later today, which will provide critical insights into the region’s inflation outlook. Meanwhile, focus also shifts to the upcoming US JOLTS Job Openings report.

US President Donald Trump’s announcement to double tariffs on steel and aluminum, effective Wednesday, escalates trade tensions, risking further strain on bilateral negotiations with the European Union. The EU has warned that this move could derail ongoing trade talks.

The US Dollar’s recent weakness was partly due to the ISM Manufacturing PMI dropping to 48.5 in May, marking the third consecutive month of contraction and falling short of forecasts. This ongoing slowdown highlights concerns over the impact of tariffs on the US manufacturing sector.

Related Articles on Tredu.com:

  • Impact of US Tariffs on Global Currencies
  • Eurozone Inflation Trends and ECB Outlook
  • US Manufacturing PMI Analysis and Market Implications
Free Guide Cover

How to Trade Like a Pro

Unlock the secrets of professional trading with our comprehensive guide. Discover proven strategies, risk management techniques, and market insights that will help you navigate the financial markets confidently and successfully.

Other News