Stronger Dollar and Trump’s Tariffs Pressure Euro to $1.03

The euro fell to $1.03 as a stronger US dollar and Trump’s global steel and aluminum tariffs pressured the currency. Expectations of a widening US-Europe interest rate gap grew, with strong US jobs data supporting the Fed’s steady policy, while the ECB recently cut rates and hinted at more easing in March. Concerns over deflation from US tariffs increased bets on further ECB cuts, with markets eyeing a deposit rate of 1.87% by December. German Chancellor Scholz warned the EU could retaliate swiftly, while trade officials signaled openness to lowering the bloc’s 10% vehicle import tax to avoid a trade war.

From a technical perspective, the first resistance level is at 1.0400, with further resistance levels at 1.0460 and 1.0515 if the price breaks above. On the downside, the initial support is at 1.0275, followed by additional support levels at 1.0220 and 1.0180.