Hi, I'm Forex Trader Andrea Russo and today I want to talk to you about an event that is shaking global markets: the tariff war between the United States and Europe.
Sunday, April 2, we started in force and new American news, celebrating "Liberation Day" by President Donald Trump. These data, which include 25% tariffs on your steel, aluminum and automobiles, look to rebalance the trade deficit of the United States. However, Europe is not ready to be saved. Ursula von der Leyen, president of the European Commission, has said that Europe has not started this matter, but is ready to defend its interests with a strong plan for control2.
The tension between the economic power has caused a significant impact on the market. The European stock exchange has not recorded consistent losses, with Milan having lost 16.4 million euros. Europe has responded with tariffs to its strategic American products, such as whiskey, motorcycles and legumes, and is evaluating further measures to protect its own industry4.
Forex Impact
This commercial war will bring about repercussions directly on the Forex market. Here's what to expect:
Removal of the American Dollar (USD): Protectionist tariffs tend to reforce the dollar, as they reduce the command of foreign currencies for imports. In addition, the increase in the price could lead the Federal Reserve to modify its own monetary policy, increasing interest rates.
Volatility of European Currencies: The euro (EUR) may rise in pressures due to economic uncertainties and European constraints. Also the value of the Swedish crown (SEK) may be negatively influenced.
Opportunity for the Trader: The volatility generated by these tensions offers opportunities for the Forex trader. Significant movements and exchange rates can be completed with trading strategies soon, but fundamentally adopt rigorous risk management.
Conclusion
The tariff war between the United States and Europe represents a significant loss for the global economy and the Forex market. Tomorrow will be a crucial day, and the trader will not carefully monitor the resources to adapt their own strategy. Always advise me to do my own analysis and operate with prudence.
Happy trading everyone!
Sunday, April 2, we started in force and new American news, celebrating "Liberation Day" by President Donald Trump. These data, which include 25% tariffs on your steel, aluminum and automobiles, look to rebalance the trade deficit of the United States. However, Europe is not ready to be saved. Ursula von der Leyen, president of the European Commission, has said that Europe has not started this matter, but is ready to defend its interests with a strong plan for control2.
The tension between the economic power has caused a significant impact on the market. The European stock exchange has not recorded consistent losses, with Milan having lost 16.4 million euros. Europe has responded with tariffs to its strategic American products, such as whiskey, motorcycles and legumes, and is evaluating further measures to protect its own industry4.
Forex Impact
This commercial war will bring about repercussions directly on the Forex market. Here's what to expect:
Removal of the American Dollar (USD): Protectionist tariffs tend to reforce the dollar, as they reduce the command of foreign currencies for imports. In addition, the increase in the price could lead the Federal Reserve to modify its own monetary policy, increasing interest rates.
Volatility of European Currencies: The euro (EUR) may rise in pressures due to economic uncertainties and European constraints. Also the value of the Swedish crown (SEK) may be negatively influenced.
Opportunity for the Trader: The volatility generated by these tensions offers opportunities for the Forex trader. Significant movements and exchange rates can be completed with trading strategies soon, but fundamentally adopt rigorous risk management.
Conclusion
The tariff war between the United States and Europe represents a significant loss for the global economy and the Forex market. Tomorrow will be a crucial day, and the trader will not carefully monitor the resources to adapt their own strategy. Always advise me to do my own analysis and operate with prudence.
Happy trading everyone!
📢 Telegram: t.me/swipeuptrading
🌍 All Socials: linktr.ee/swipeuptradingcompany
🌟 For collaborations or partnerships, feel free to DM me!
🌍 All Socials: linktr.ee/swipeuptradingcompany
🌟 For collaborations or partnerships, feel free to DM me!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📢 Telegram: t.me/swipeuptrading
🌍 All Socials: linktr.ee/swipeuptradingcompany
🌟 For collaborations or partnerships, feel free to DM me!
🌍 All Socials: linktr.ee/swipeuptradingcompany
🌟 For collaborations or partnerships, feel free to DM me!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.