Euro Rises Above $1.09 Despite Tariff Threats

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The euro climbed above $1.09, showing unexpected strength after President Trump announced 20% tariffs on all EU imports.

◉ Fundamental Rationale
● The currency got a boost because the U.S. dollar weakened. Trump’s tariffs made trade tensions worse and worried people about slower economic growth.
● Also, new numbers showed Eurozone inflation fell to 2.2% in March, the lowest since November 2024.
● This lower inflation means the European Central Bank doesn’t need to raise interest rates, making the euro more appealing to investors.

◉ Technical Observation
● From a technical perspective, an inverse head and shoulders pattern has formed, hinting at a possible trend reversal.
● A breakout above $1.095 could pave the way for stronger bullish momentum.

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