Certainly. Here is a rewritten and expanded version of the article originally reported on FXStreet by Eren Sengezer regarding the EUR/USD slide below 1.1700 as tariff fears drive the US Dollar to a two-week high. Additional context and details are included, drawing upon reputable financial news sources such as Reuters, Bloomberg, and Investing.com for deeper insight into the Forex market’s reaction and fundamentals.
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## EUR/USD Slides Below 1.1700: Tariff Concerns Propel Dollar to Two-Week High
*Original reporting by Eren Sengezer (FXStreet); additional analysis incorporated from Reuters, Bloomberg, and Investing.com*
### Overview
The EUR/USD currency pair experienced a sharp decline, breaking below the psychologically and technically significant 1.1700 level. This drop followed escalated concerns surrounding the imposition of tariffs and the potential for a global trade conflict, resulting in a notable strengthening of the US Dollar (USD) to levels not seen in two weeks. The dynamic between US fiscal policies, trade tensions, and global risk appetite continues to significantly influence forex market movements.
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### Key Developments Leading to EUR/USD Decline
#### 1. Tariff Anxiety and Safe-Haven Demand
– Increased tensions over prospective US tariffs on international imports have injected substantial volatility into global financial markets.
– Market participants, spooked by the potential for retaliatory actions from major US trading partners, sought the dollar as a safe-haven asset.
– The fears were compounded by reports indicating further tariffs could be announced, particularly targeting automobile imports from Europe, potentially deepening the economic rift between the US and the Eurozone.
#### 2. Dollar’s Resilience Supported by Trade Developments
– The US Dollar Index (DXY), which measures the greenback against a basket of major currencies, witnessed gains, rising to its highest level in two weeks.
– The dollar’s ascendancy was buoyed by defensive demand as traders moved away from risk-sensitive assets, particularly emerging market currencies and equities.
#### 3. Euro’s Vulnerability
– The euro came under pronounced selling pressure, not only due to dollar strength but also because of uncertainties clouding the Eurozone’s economic and monetary outlook.
– Potential disruptions to Eurozone exports and manufacturing further undermined investor sentiment towards the single currency.
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### In-Depth Analysis: USD’s Strength and EUR’s Weakness
#### Dollar as a Global Safe Haven
– Traditionally, the US dollar appreciates during periods of elevated market uncertainty or geopolitical risk.
– As the world’s reserve currency, the USD is perceived as a safer asset in turbulent times.
– The recent tariff threats prompted many investors to reduce exposure to riskier assets and increase dollar-denominated holdings.
#### Tariff Timeline and Escalation
– The US administration had earlier announced tariffs on steel and aluminum, with suggestions of more extensive measures against automobiles and other goods.
– In response, countries including China, Canada, and the European Union signaled intentions to retali
Read more on AUD/USD trading.