EUR/USD drops as US Dollar gains while US-China trade uncertainty escalates
The post EUR/USD drops as US Dollar gains while US-China trade uncertainty escalates appeared on BitcoinEthereumNews.com.
EUR/USD faces slight pressure above 1.1400 as the US Dollar steadies, with investors seeking clarity on the US-China trade outlook. US Treasury Secretary Bessent has put the responsibility for the US-China trade progress on Beijing. ECB officials support the need for more interest rate cuts. EUR/USD trades lower around 1.1390 during North American trading hours on Tuesday. The major currency pair ticks lower as the US Dollar (USD) steadies despite escalating uncertainty about the trade outlook between the United States (US) and China. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gains to near 99.35. The comments from US Treasury Secretary Scott Bessent that China should be the one to initiate trade talks with the US have increased investors’ doubts about whether trade discussions are underway. “I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them, Bessent said in an interview on CNBC’s Squawk Box on Monday. Meanwhile, contradictory statements from US President Donald Trump and Beijing about Chinese President Xi Jinping calling Trump to discuss terms and conditions on trade have also diminished hopes of a resolution of the US-China trade war in the near term. Donald Trump has been insisting that China’s Xi has called him several times to discuss bilateral trade since the imposition of higher tariffs on Beijing. However, the Chinese Foreign Ministry continues to deny any economic and trade discussions between Trump and Xi. Apart from comments from the White House on US-China trade talks, a slew of US economic data will influence action in the US Dollar this week. Investors will pay close attention to the preliminary Q1 Gross Domestic Product (GDP), ISM Purchasing Managers’ Index (PMI), ADP Employment Change and Nonfarm Payrolls (NFP) data for…
