After staying above $1.13 handle, the euro has started slackening during the Tuesday trading session.
Specifically, the euro posted a jumped up against the greenback on Monday amid slow trading during the stock exchange weekend in the USA. However, trading is getting back to normal pace today, and the euro-to-US dollar exchange rate shows a reasonable trend. The negative impact on the euro as well as support for the American currency is coming from the anxious mood at the exchanges regarding the offensive message of the US President Donald Trump towards Europe and Asia.
Specifically, the American leader was expected to receive the report prepared by the US Department of Commerce covering the issue of whether car and spare parts imports threaten the national security of the country. In the case of the positive determination, Washington would get a reason to launch 20-25% duties on imports of cars and spare parts.
Donald Trump has already expressed his dogmatic positions being a supporter of punishment duties. Meanwhile, in the EU, Chairman of the European Commission Jean Claude Juncker noted that the US President had promised not to launch duties on car imports from Europe in the near term otherwise Europea will take countermeasures in the foreign trading area. Such rhetoric seems to depress euro but bolster the US dollar.
There are no macroeconomics reports to be expected in the USA and euro-area today.