## EUR/USD Slides Below 1.1700 as Tariff Fears Boost the Dollar to 2-Week Highs
*Based on the article by FXStreet Staff, with additional analysis*
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### Executive Summary
The euro (EUR) slid below the 1.1700 mark against the US dollar (USD) in recent trading sessions, pressured by renewed anxieties over tariffs and escalating trade tensions. As investors flocked to the safe-haven dollar, the greenback soared to its highest level in two weeks. These moves reflect the intensifying concerns that global trade disputes, particularly between the United States and China, could slow economic growth worldwide and prompt a flight to safety.
In this detailed analysis, we’ll explore the drivers behind the EUR/USD decline, the broader market impact, and what’s next for traders and investors. Insights have been extended with data and comments from market analysts, as well as complementary information from sources including Bloomberg and Reuters.
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### Market Overview: EUR/USD’s Downward Trajectory
The EUR/USD currency pair has experienced notable volatility amid shifting risk sentiment in global financial markets. At the heart of the latest move was a renewed rally in the US dollar, coinciding with growing fears over the implications of potential new tariffs.
#### Key Price Levels
– **EUR/USD dropped below the critical 1.1700 level**, marking its weakest point in two weeks.
– **Technical support levels:** The pair eyed further potential declines toward the 1.1650 and 1.1620 support regions.
– **Resistance:** Any recovery was expected to encounter resistance near the 1.1750 and 1.1790 levels.
#### Market Drivers
Several factors contributed to the euro’s latest pullback:
– **Heightened Trade Tension:** News emerged suggesting the US was preparing to impose additional tariffs on Chinese goods, reigniting worries of a prolonged trade war.
– **Safe-Haven Demand:** Investors sought safety in the US dollar, traditionally seen as a refuge during times of uncertainty.
– **Weak Eurozone Data:** Eurozone fundamentals, particularly disappointing economic data from Germany and France, undercut the euro’s appeal.
– **Federal Reserve Policy Expectations:** The prospect of tighter US monetary policy further supported the dollar’s gains.
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### In-Depth Analysis: Tariffs and Trade Wars – The Main Catalysts
#### Renewed Trade Disputes
– **US-China Tensions:** Reports suggested that the Trump administration was moving forward with plans for fresh tariffs targeting an additional $200 billion worth of Chinese imports. According to Bloomberg, these tariffs would escalate the conflict and could prompt retaliation from Beijing.
– **Market Impact:** The looming tariffs stoked fears of a worldwide slowdown, with risk-averse investors turning to the USD and other safe-haven assets such as the Japanese yen and US Treasuries.
#### Impact on the Euro
– **Export-Driven Vulnerability:** As the eurozone heavily relies on exports, growing trade barriers pose a
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