EURUSD

Volatility increased in the EURUSD pair after Trump's trade war with China escalated. The Trump administration's imposition of tariffs up to 104% on China and the statement that "countries will pay significant tariffs" have heightened global trade tensions, significantly reducing risk appetite. As a result, the EURUSD pair came under selling pressure. Although the European Central Bank's decision to lower interest rates by 25 basis points to 2.50% in March and the expectation of another cut at the meeting on April 17 have eased pressure on the Euro, the rising expectations for interest rate cuts from the Federal Reserve (Fed) eliminate the competitive advantage. The Fed's struggle between tariff-related inflation concerns and the risk of economic slowdown will play a decisive role in the pair's trajectory. Under these conditions, while selling pressure on the EURUSD pair is expected to continue in the short term, if the tariff crisis deepens, the possibility of movements towards the 1.0800 level is seen as likely.