EUR/USD Backs Off As Trade War Fears Subside

EUR/USD backed off today after yesterday’s rally as fears of a trade war between the United States and China subsided. With no clear date of implementation of tariffs in China and the USA, chances are that the world’s two biggest economies may reach an agreement before a full-scale trade war starts. The current trading session was relatively light on economic news from the United States, and so traders wait for tomorrow’s important employment data.

Initial jobless claims climbed from 218k to 242k last week, beating the analysts’ median estimate of 225k. (Event A on the chart.)

US trade deficit widened to $57.6 billion in February from $56.7 billion in January. Experts had predicted a bit smaller gap of $56.9 billion. (Event A on the chart.)

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