Forex News: Euro Soars As Tariff Walk-back Eases Tensions Further

Euro Soars As Tariff Walk-back Eases Tensions Further

(RTTNews) - The euro strengthened against other major currencies in the European session on Friday, as the investor sentiment improved after the EU said it would suspend its planned countermeasures to Trump's tariffs for 90 days.

French President Emmanuel Macron said today that the U.S. tariff suspension offers only a "fragile" pause in tensions - but a vital opportunity for negotiations.

However, the spat between the U.S. and China has raised concerns of a prolonged trade war that could hurt several major economies. After the U.S. said that Chinese goods will be taxed at 145% as against the earlier proposed levy of 125%, China's finance ministry has revealed that it will raise tariffs on U.S. goods to 125% from 84%, effective Saturday (April 12).

Meanwhile, investors are largely making cautious moves, reacting to the developments on the tariff front. The spat between the two major economies has raised concerns of a prolonged trade war that could hurt several major economies.

In the European trading, the euro rose to more than a 3-year high of 1.1473 against the U.S. dollar, a 9-day high of 163.13 against the yen and nearly a 1-1/2-year high of 0.8738 against the pound, from early lows of 1.0778, 161.31 and 0.8660, respectively. If the euro extends its uptrend, it is likely to find resistance around 1.16 against the greenback, 165.00 against the yen and 0.88 against the pound.

The euro edged up to 0.9320 against the Swiss franc, from an early low of 0.9235. The franc may test resistance around the 0.96 region.

Against the Australia and the New Zealand dollars, the euro advanced to 2-day highs of 1.8449 and 1.9754, respectively. The next possible upside targets for the euro are seen around 1.87 against the aussie and 2.00 against the kiwi.

The euro appreciated to nearly a 5-year high of 1.5933 against the Canadian dollar, from an early low of 1.5692. On the upside, 1.60 is seen as the next resistance level for the euro.

Looking ahead, U.S. PPI for March, U.S. University of Michigan's consumer sentiment for April and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

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