empty
16.04.2025 06:48 PM
No Progress in Negotiations

This week, the European Union and the United States made no significant progress in resolving trade disputes, as officials from President Donald Trump's administration indicated that most of the U.S. tariffs imposed on the bloc would not be lifted.

This image is no longer relevant

Despite the negotiations, both sides held firm to their positions. U.S. representatives insisted that the EU must make substantial concessions and lower trade barriers for American goods. In turn, European negotiators argued that the tariffs imposed by the U.S. are unfair and violate World Trade Organization rules. Of particular concern to European officials were the steel and aluminum tariffs, which they claim are seriously harming European industry. They also expressed alarm over U.S. plans to introduce additional tariffs on European cars.

Rumors suggest that EU Trade Committee head Maros Sefcovic left the meeting without clarity on the U.S. stance. American officials indicated that the 20% reciprocal tariffs, which Trump reduced to 10%, as well as other tariffs targeting sectors like autos and metals, would not be lifted immediately.

It's worth recalling that uncertainty surrounding Trump's chaotic tactics—filled with delays, retreats, new threats, sudden exemptions, and trial balloons—has already led to a sharp rise in the euro and a weakening of the U.S. dollar. Clearly, this trend is likely to continue.

The EU proposed that both sides eliminate all tariffs on industrial goods, including automobiles, but Trump has so far rejected this offer. Experts have repeatedly pointed out that although Trump seems to be banking on a 25% tariff on imported vehicles and auto parts to boost domestic production, the outcome may not be so straightforward.

Elsewhere, in Canada, Prime Minister Mark Carney stated that his government would allow automakers to import U.S.-made cars and trucks duty-free, as long as the companies continue to manufacture vehicles in Canada. This move provides some relief from the trade war for companies like General Motors and Stellantis, which have assembly plants in Ontario but export large volumes of vehicles from the U.S. to Canada.

Technical Outlook for EUR/USD:

Buyers now need to focus on reclaiming the 1.1420 level. Only then can a test of 1.1467 be expected. From there, a climb to 1.1525 is possible, though achieving this without support from major market players will be challenging. The ultimate target is the 1.1545 high. In case of a decline, serious buying interest is expected only around 1.1340. If there's no activity at that level, it would be prudent to wait for a retest of the 1.1260 low or to consider long positions from 1.1165.

Technical Outlook for GBP/USD:

Pound buyers need to take control of the nearest resistance at 1.3300. Only then can they aim for 1.3345, a level that will be difficult to break above. The next target would be the 1.3390 area. In case of a decline, bears will attempt to reclaim control over 1.3250. If they succeed, a breakout below that range would deal a serious blow to the bulls and could push GBP/USD down to the 1.3180 low, with further downward potential toward 1.3130.

Jakub Novak,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

DXY. The Dollar Holds Out Hope for a Recovery

Today, the U.S. Dollar Index (DXY), which tracks the greenback's performance against a basket of major currencies, is in a phase of bullish consolidation after reaching an almost one-month high

Irina Yanina 11:31 2025-05-09 UTC+2

Markets Will Open Their Eyes and Close Their Ears

"Better go and buy stocks right now! Thanks to the White House's trade policy, the U.S. will attract $10 trillion in investment. This country will be like a rocket going

Marek Petkovich 11:10 2025-05-09 UTC+2

The U.S. and U.K. Sign a Trade Agreement

The British pound fell in response to the news that the U.S. and the U.K. had signed a trade agreement. However, there are many nuances that need to be clarified

Jakub Novak 09:31 2025-05-09 UTC+2

Has Everyone Started Believing Trump Again?

The U.S. dollar resumed its upward trajectory, while several risk assets dropped sharply after U.S. President Donald Trump stated that he expects the upcoming trade talks with China, scheduled

Jakub Novak 09:28 2025-05-09 UTC+2

The European Union Prepares New Tariffs Against the United States

It has come to light that the European Union is planning to impose additional tariffs on U.S. exports worth €95 billion if current trade negotiations with President Donald Trump's administration

Jakub Novak 09:25 2025-05-09 UTC+2

GBP/USD Overview – May 9: The Bank of England Confuses Traders Even More

The GBP/USD currency pair moved downwards first and then upwards on Thursday, indicating that the market has not yet decided how to interpret the Bank of England's meeting results

Paolo Greco 04:05 2025-05-09 UTC+2

EUR/USD Overview – May 9: Powell and the Fed Changed Nothing

On Thursday, the EUR/USD currency pair continued to trade within the same sideways channel, clearly visible on the hourly chart, almost until the evening. As we warned, the outcome

Paolo Greco 04:05 2025-05-09 UTC+2

BoE Is Concerned About the Economy

I regularly monitor three central banks, each representing an almost entirely different approach to monetary policy. On Thursday, the Bank of England cut interest rates, citing concerns over slowing economic

Chin Zhao 01:35 2025-05-09 UTC+2

The Fed Chair Is Steadfast as Steel

Everyone has already had time to review the results of the recent Federal Reserve meeting. In this article, I want to highlight a few positive points for the U.S. dollar

Chin Zhao 01:16 2025-05-09 UTC+2

GBP/USD: Bank of England Cuts Rates, Trump Signs Trade Deal with London

On Thursday, the Bank of England delivered a widely expected 25 basis point interest rate cut, and Donald Trump announced the conclusion of a trade agreement with the United Kingdom

Irina Manzenko 00:28 2025-05-09 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.