FX10 data, as of February 27th, despite Trump's statement that US tariffs will impact Europe, the Euro is still trading within its narrowest range since his inauguration, indicating that the market is fatigued by tariff threats. The Euro hit its narrowest intraday fluctuation in almost two months today. The Euro has shown a relatively low sensitivity to tariff news, with traders avoiding significant position adjustments before the formal announcement of tariff policies. Chris Turner, Head of International Foreign Exchange Strategy at Rabobank in the Netherlands, said, 'To some extent, the market will only believe it when it sees the tariffs. Although the threat is real, the impact on the market is diminishing.' As the impact of tariffs weakens, FX hedging costs are also decreasing. The cost of hedging against fluctuations in the Euro/US Dollar in the coming week is currently near its lowest level in almost two months.
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Euro Fluctuation narrowed to the lowest level since Trump took office, the market shows fatigue towards tariff threats
FX10 data, as of February 27th, despite Trump's statement that US tariffs will impact Europe, the Euro is still trading within its narrowest range since his inauguration, indicating that the market is fatigued by tariff threats. The Euro hit its narrowest intraday fluctuation in almost two months today. The Euro has shown a relatively low sensitivity to tariff news, with traders avoiding significant position adjustments before the formal announcement of tariff policies. Chris Turner, Head of International Foreign Exchange Strategy at Rabobank in the Netherlands, said, 'To some extent, the market will only believe it when it sees the tariffs. Although the threat is real, the impact on the market is diminishing.' As the impact of tariffs weakens, FX hedging costs are also decreasing. The cost of hedging against fluctuations in the Euro/US Dollar in the coming week is currently near its lowest level in almost two months.