No rush to impose tariffs lifts the spirits of FX investors
Just before Trump’s inauguration at 6:00 PM CET, reports emerged indicating that the initial executive orders would not involve imposing harsh tariffs. In the weeks following the presidential election in November 2024, the dollar had significantly strengthened, particularly against currencies vulnerable to Trump's trade policy. Although the new US president has the ability to impose broad tariffs, they are likely to target strategic sectors from the U.S. perspective.
Movements of around 1% in the EURUSD pair are extremely rare. If the price increase is sustained, this will mark the largest upward move in the pair since November 2023.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
EURUSD is up nearly 1.5% today. Source: Bloomberg Finance LP
The U.S. dollar has strengthened by approximately 5% against the euro since the U.S. elections. The inauguration day typically occurs roughly 50 days after the election. Looking back over the past 30 years, the dollar has generally strengthened for about 100 days following an election, after which normalization tends to occur. The current dollar appreciation against the euro is the strongest in a post-election cycle in 30 years. Source: Bloomberg Finance LP, XTB
Today, EURUSD is breaking a downward trendline that has persisted since the beginning of Q4 2024. A potential inverted head-and-shoulders pattern may have also formed. From a technical analysis perspective, the key resistance level is around 1.0500. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
