The Eurozone released its producer price index (PPI) data, which influenced the movement of EURUSD in trading on Thursday (April 3, 2025).
The PPI for February was reported to have grown by 3% year-on-year (YoY), which is lower compared to the previous month’s figure of 3.4% YoY.
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Following this release, the EURUSD pair fell from its daily peak but managed to stay above the 1.10000 mark.
Market participants appear to still be reacting to the newly implemented import tariff policies and reciprocal measures introduced by U.S. President Donald Trump.
Earlier today, Trump announced an increase of 10% on import tariffs for all countries.
In addition, due to the reciprocal policy, several countries will face even steeper tariff hikes. China, the country with the largest trade surplus, is now subject to a 54% import tariff, while the European Union faces a 20% increase. Other Asian nations, including Vietnam, Cambodia, South Korea, Japan, and India, are also experiencing significant tariff increases.
Trump’s policy carries the potential to ignite a broader trade war, posing risks to global economic growth. Market observers also note that the U.S. economy is showing signs of deceleration due to these measures, putting additional pressure on the U.S. dollar and increasing the likelihood of continued upward momentum for EURUSD.
