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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
