EUR/USD faces significant offers near 1.0800 as the US Dollar resumes its upside trend.
Trump’s victory has improved the US Dollar’s long-term outlook.
The Euro is down amid Trump tariffs’ threats, German political uncertainty, and doubts over the Eurozone economic outlook.
EUR/USD faces selling pressure near the key resistance of 1.0800 in European trading hours on Friday. The major currency pair fails to extend Thursday’s recovery as the US Dollar (USD) resumes its upside journey after a sharp correction.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back to nearly 104.65. The index had retraced to nearly 104.20 on Thursday following the more than four-month high of 105.50 registered after Donald Trump won the presidential election in the United States (US).
The reasoning behind the US Dollar’s recovery can be attributed to the victory of Trump, who vowed to raise import tariffs by 10% and lower corporate taxes in his election campaign. Market experts suggest that Trump’s fiscal policy, if implemented, would result in higher investment, spending and labor demand, which will elevate upside risks to inflation and force the Federal Reserve (Fed) to opt for a restrictive monetary policy stance.
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