EUR/USD, EUR/GBP and GBP/USD drop amid US President Trump tariff threat
EUR/USD, EUR/GBP and GBP/USD drop as greenback appreciates amid US President Trump 25% tariff threat on imports from Mexico and Canada, alongside an additional 10% tariff on Chinese goods.
EUR/USD rejected by key resistance
EUR/USD has been rejected by its major $1.0461-to-$1.0533 resistance area as US President Trump threatens that 25% tariffs on imports from Mexico and Canada will take effect on 4 March, alongside an additional 10% tariff on Chinese goods, pushing the US dollar higher.
Minor support is now seen at the mid-January high at $1.0354 and then along the breached downtrend line at $1.0345.
EUR/GBP trades in 3-month low
EUR/GBP's fall through its late December low at £0.8264 has put the December low at £0.8223 on the map.
Short-term the cross is trying to recover from Thursday's £0.8243 low.
The 10 February low at £0.8310 and the 55-day simple moving average (SMA) at £0.8330 represent resistance above the late December and 21 February lows at £0.8264-to £0.8266.
GBP/USD slips
GBP/USD drops but nonetheless still has the mid-December high at $1.2729 in its sights. This will remain the case while last week's low at $1.2564 and the $1.2550 early February high underpin on a daily chart closing basis.
Should this not be the case, the January peak at $1.2524 would be targeted.
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