The Eurozone has published inflation data (Consumer Price Index/CPI), impacting the EURUSD movements during trading on Monday (February 3, 2024).
In January, the CPI was recorded at a growth of 2.5% year-on-year (YoY), matching the forecast provided by Trading Central at 2.5% YoY, and showing an increase from the previous month’s figure of 2.4% YoY.
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Meanwhile, the core inflation (core CPI), which excludes the energy and food sectors, also grew by 2.7% YoY, consistent with predictions and remaining unchanged from the December growth of 2.7% YoY.
Following this release, the EURUSD continued to face pressure, hovering close to the daily low of 1.02104. Compared to the closing levels on Friday, the EURUSD plummeted by 1,490 points, nearly 150 pips.
The EURUSD was largely affected after U.S. President Donald Trump signed an executive order raising import tariffs from Canada and Mexico by 25% and from China by 10%, effective February 4. Shortly thereafter, Canadian Prime Minister Justin Trudeau retaliated by imposing a 25% tariff on imports from the United States. Mexico and China are also expected to respond in kind.
There is a potential for the European Union to face increased import tariffs as President Trump had previously indicated such measures. The EU has also firmly stated its intention to raise import tariffs on U.S. goods.
