**U.S. Dollar Gains Ground as Traders Focus on New Tariff Rates – Analysis for EUR/USD, GBP/USD, USD/CAD, USD/JPY**
*Original analysis and reporting credit: Vladimir Zernov, FXEmpire.*
—
The U.S. dollar has continued to strengthen this week, propelled by mounting anticipation around new tariff measures and a persistent risk-off sentiment in global markets. This dollar surge has put major currency pairs like EUR/USD, GBP/USD, USD/CAD, and USD/JPY under significant pressure, catalyzing notable moves and fresh technical signals that traders are closely watching. In this comprehensive analysis, we will break down the USD’s performance in the context of new macroeconomic catalysts and review key developments across the primary forex pairs.
—
### Macro Drivers: Dollar Strengthens as Tariff Talk Escalates
The renewed focus on U.S. tariff policy has ignited investor interest in the U.S. dollar. With speculation swirling about fresh tariff rates, particularly aimed at major trading partners such as China and the European Union, traders are recalibrating exposure across asset classes:
– **Market risk sentiment:** As trade friction threatens to escalate, investors favor traditional safe-haven assets like the U.S. dollar, the Japanese yen, and U.S. government bonds.
– **Impact on global growth:** New or expanded tariffs stoke fears of slower global growth, uncertainty in equity markets, and disruptions in international supply chains, which further bolster the greenback.
– **Federal Reserve outlook:** Persistent inflationary pressures and strong labor market data have kept the Fed hawkish. Rate differentials in favor of the USD continue to underline its appeal amid risk-averse conditions.
– **Emerging market pressure:** Currencies sensitive to global risk — including many emerging market FX pairs — face headwinds, creating a feedback loop that supports the dollar.
—
### EUR/USD: Under Pressure as Dollar Rallies
The euro has been among the most prominent victims of the dollar’s march higher. Despite pockets of better-than-expected euro zone data, the single currency couldn’t break the spell of dollar momentum.
**Key Factors Affecting EUR/USD:**
– **U.S. economic fundamentals consistently outperforming Europe.**
– **European Central Bank’s dovish tone compared to the Fed.**
– **Ongoing geopolitical uncertainties, from energy worries to war-related headlines.**
**Technical Analysis (EUR/USD):**
– The pair broke below crucial support levels at 1.0500, signaling further bearish intent.
– If downside momentum persists, next closely-watched support sits near the psychological 1.0400 handle, a level not seen since early 2017.
– On the upside, 1.0630 now functions as immediate resistance, followed by 1.0700.
– Momentum oscillators, such as RSI, remain in bearish territory, with no strong signs of divergence or reversal.
**Summary Table: EUR/USD Technical Levels**
| Level | Nature | Commentary
Read more on GBP/USD trading.