EUR/USD: Euro Takes It on the Chin and Pops After Trump Slaps Bloc with 30% Tariffs

European bourses slipped and US stock futures were pointing lower Monday morning. “I’m on a mission,” the euro, probably, as it powered up toward $1.17.

🍽️ Tariff Punch for Breakfast

• The euro EURUSD pulled off a comeback early Monday, popping 0.2% to approach $1.17 after swimming in the red in the past two sessions. Forex bros pushed the pair to a session high of $1.1697, eyeing that big round number just overhead.
• The bounce comes after President Trump turned up the pressure cooker over the weekend, hitting the European Union with a fresh 30% blanket tariff on imports starting August 1 — though “Sectoral Tariffs” like the auto levy will remain at 25%.
• The bold move sent European bourses slipping and had US stock futures pointing south. The euro’s resilience, meanwhile, shows currency speculators may see the dollar’s broader troubles as outweighing the trade hit — at least for now.

⚙️ Countermeasures in the Works

• European Commission President Ursula von der Leyen didn’t hold back in her weekend statement, saying the bloc is “ready to continue working towards an agreement” but will defend its interests if forced to.
• She did make sure to call out the economic blow: a 30% tariff on EU exports would hammer supply chains and push up costs for businesses and consumers on both sides of the Atlantic.
• If talks don’t move forward to a deal, she warned that the EU will take “all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

💪 Can the Euro Hold Up?

• Monday’s pop comes as the single currency tries to snap a two-day losing streak, riding a bit of “must accomplish mission” energy to regain its bullish footing.
• But traders know there’s plenty that could rattle sentiment — the tariff deadline hits August 1, and in the meantime, any fresh headlines could flip the script fast.
• It’s still early week — the euro clings to the view that the dollar’s own macro baggage — including the Fed’s cautious dance around rate cuts — still caps greenback upside, even as trade tensions heat up. Even more so with US inflation coming Tuesday.