FX.co ★ Euro Slightly Up as Markets Await EU Response to U.S. Tariffs

The euro hovered slightly above the $1.09 mark as investors awaited clearer indications of the European Union's strategy in dealing with U.S. tariffs. This follows two consecutive sessions of declines driven by a wider retreat from risk-driven currencies amid increasing trade tensions and growing concerns over global economic growth. On Monday, the European Commission announced it proposed a "zero-for-zero" tariff agreement to the Trump administration in an attempt to prevent a trade conflict, with EU ministers prioritizing negotiations. However, the proposal was rejected by Washington. Simultaneously, the EU has suggested imposing counter-tariffs of 25% on various U.S. products. This follows President Donald Trump's recent decision to apply tariffs on steel and aluminum. In a related development, Beijing has declared it will not yield to what it terms U.S. "blackmail," following President Trump's threat to impose an added 50% tariff on Chinese goods unless China withdraws its retaliatory measures by Tuesday.