Forex Today: Markets Open Lower Amid Tariff Anxiety, Eurozone and Fed Data in Focus

Forex Today: Risk-Off Start to the Week as Tariff Fears Take Center Stage

Markets Cautious as Trade Concerns Dominate Headlines

Forex markets opened Monday with risk-off sentiment as traders closely track ongoing trade developments from the United States. Investor nerves were rattled following US President Donald Trump's latest tariff rhetoric, which hinted at stricter penalties for countries aligned with BRICS policies.

The anticipation of fresh trade policy announcements and the fallout on global trade are curbing demand for risk-sensitive currencies, while bolstering safe-haven assets like the US Dollar and Japanese Yen.

Eurozone Retail Sales, Fed Consumer Credit Awaited

On the economic calendar, Monday will feature:

• Eurozone Retail Sales (May) – Investors will gauge the strength of consumer spending across the bloc.
• US Consumer Credit Change (May) – Scheduled for late US session, offering insight into American household financial behavior.

These data points could shape short-term direction for the EUR/USD and USD crosses, especially as central banks adopt more data-driven stances.

What to Watch:

• Any surprise tariff announcement from the US
• Volatility in commodity and emerging market currencies
• USD strength against high-beta FX pairs

Explore more on FX market reactions to trade policy shifts at Tredu.com/forex