FX.co ★ Euro Gains Despite Trump's Tariffs

The euro surged to $1.09 on Thursday following U.S. President Donald Trump's decision to implement a 20% tariff on all imports from the European Union. This currency uptick was also bolstered by a weakening U.S. dollar, as the tariffs intensified the ongoing global trade conflict, sparking fears about the potential impact on economic growth. Concurrently, recent economic data revealed that the Eurozone's inflation rate decreased to 2.2% in March, marking its lowest point since November 2024. Core inflation also fell more than anticipated, reaching 2.4%, which is its lowest level since January 2022. Amidst these cooling inflationary pressures and rising trade tensions, market anticipations grew stronger regarding a potential 65 basis point reduction in interest rates by the European Central Bank this year.