Risk Appetite Returns After Trump Backs Off Immediate EU Tariff Threat
| Action Insight Mid-Day 5-26-25 |
Risk Appetite Returns After Trump Backs Off Immediate EU Tariff Threat |
Global markets are showing tentative signs of relief after US President Donald Trump walked back his threat to impose a 50% tariff on the European Union. The abrupt shift to reinstate a July 9 deadline for negotiations has helped ease investor concerns for now. Stocks in Germany and France are trading modestly higher in European session, though the UK market remains closed for holiday. US equity futures are also pointing to a firmer open, suggesting a rebound from last week's tariff-induced selloff. This shift in tone has also taken some steam out of safe-haven flows. Gold prices dipped slightly as investors rotated back into risk assets. The European Commission confirmed that trade representatives from both sides are scheduled to talk later today, describing the development as a “new impetus”. A Commission spokesperson noted that both parties have agreed to fast-track negotiations and remain in close contact, providing hope that a workable framework could still be reached before the "old" deadline. In the currency markets, the mildly risk-on environment is supporting higher-beta currencies. Kiwi and Aussie are leading the pack, with Sterling also gaining some traction. On the other hand, traditional safe havens like Yen, Swiss Franc are under modest pressure, while Dollar is also weak. Euro and Loonie positioning in the middle.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1303; (P) 1.1339; (R1) 1.1402; More... Intraday bias in EUR/USD remains on the upside for the moment. Correction from 1.1572 should have completed at 1.1064. Further rise should be seen to retest 1.1572 first. Decisive break there will resume larger up trend to 61.8% projection of 1.0176 to 1.1572 from 1.1064 at 1.1927. On the downside, below 1.1255 minor support will turn intraday bias neutral, and probably extend the corrective pattern with another falling leg. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 05:00 | JPY | Leading Economic Index Mar F | 108.1 | 107.7 | 107.7 | | 06:30 | CHF | Employment Level Q1 | 5.512M | 5.534M |
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