Euro dips amid Trump's Tariff Threats

The euro slid against its major counterparts on Friday as President Donald Trump announced plans to impose tariffs on European Union imports starting June 1. In a post on Truth Social, Trump complained that the EU has "been very difficult to deal with" and claimed that trade talks with the bloc are "going nowhere!"

In another post on Truth Social, he also threatened to levy a 25 percent tariff on Apple (AAPL) iPhones that are not produced in the United States, fueling concerns about a potential slowdown in economic growth.

While these tariff threats sent ripples through the markets, economic data from Germany showed a stronger-than-expected first-quarter rebound. According to a detailed report from Destatis, Germany’s GDP grew by 0.4 percent, up from an earlier forecast of 0.2 percent, following a 0.2 percent contraction in the fourth quarter.

The euro’s decline was evident across several currency pairs. Against the yen, the euro fell to a 4-week low of 161.08, down from an early high of 162.75, and against the Swiss franc, it slipped to 0.9293 from a 3-day high of 0.9380. Technical support for the euro is expected around 157.00 against the yen and 0.92 against the franc.

Similarly, the euro dropped to a 1-and-a-half-month low of 0.8380 against the British pound. If the downward trend continues, the next support level for the pound is likely to be near the 0.82 mark.

Against the Canadian dollar, the euro drifted to a 1-week low of 1.5587, while it hit 3-day lows of 1.7482 against the Australian dollar and 1.8969 against the New Zealand dollar. Expected support levels are around 1.54 for the loonie, 1.67 for the aussie, and 1.86 for the kiwi.

Furthermore, the euro retreated to 1.1297 against the U.S. dollar, down from an early two-week high of 1.1375. Analysts suggest that the next level of support may lie around the 1.10 mark.