The EURUSD pair reverses early losses following the higher than expected US CPI release, rising by nearly 0.6% above 1.042 today, as the market begins to price in a lower probability of escalating trade tensions between Europe and the United States.
- The Irish Department of Foreign Affairs issued a statement indicating that during a virtual meeting between the European Union and the United States, there was strong consensus on the need for EU unity and solidarity on trade issues.
- Ministers expressed clear support for the Commission’s strategy of engaging in dialogue with the US in the coming days and weeks. It was agreed that EU Trade Ministers and the European Commission would maintain close contact and collaborate on a European response to ongoing challenges.
- Additionally, US House Speaker Johnson stated that the White House is considering exemptions from reciprocal tariffs, including those on automobiles and pharmaceutical products.
- Earlier, the US Dollar Index (USDIDX) declined after White House senior advisor Hassett revealed that retaliatory tariffs are in development and that talks with other countries had begun this morning. Markets interpret this as an opportunity for a less aggressive US trade policy.
A statement by Irish Tanaiste, published on the website of the Irish Department of Foreign Affairs:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app-
“I welcome this essential cooperation and information-sharing with my EU counterparts and the Commission. This is an evolving situation and we will be keeping in close contact in the coming days and weeks.
-
“It was encouraging to hear about the engagement with the US that has started and to know that further meetings are planned. There is a window for negotiation ahead of the 12 March deadline.
-
“Ireland is keenly aware of the perils of further escalation. We consider that it is in our collective interests that we seek to work with the new administration and to highlight the powerful, mutual benefit of the transatlantic relationship.
-
“Most importantly, EU Member States are united and the EU Commission is fully mobilised to protect European economic interests.”
Source: xStation5
