The euro drifted lower against the US dollar on Monday, moving closer to the 1.1400 level as renewed uncertainty over trade tariffs weighed on investor sentiment. The currency faced pressure amid concerns that unresolved disputes could dampen global growth prospects and disrupt market stability.
Tensions over potential tariff escalations between major economies have resurfaced, keeping risk appetite in check and lending fresh support to the US dollar’s safe-haven appeal. Despite some earlier signs of optimism around trade negotiations, a lack of concrete progress has left markets cautious and defensive.
Analysts noted that the euro’s recent softness reflects broader unease about Europe’s exposure to global trade risks. “Without clear resolution on tariffs, the euro remains vulnerable,” one strategist said. “Investors are increasingly leaning toward safer assets like the dollar while uncertainty persists.”
Adding to the euro’s challenges, recent economic data from the eurozone has been mixed, with weaker-than-expected industrial production figures highlighting lingering growth concerns. These developments have limited any upside momentum for the single currency, even as European Central Bank officials maintain a cautious tone on future policy moves.
Meanwhile, the US dollar continues to find underlying support from solid domestic economic readings, including better-than-expected retail sales and consumer sentiment figures. Stronger US fundamentals have reinforced the greenback’s advantage against major rivals.
Traders will be monitoring upcoming trade headlines and key economic releases from both Europe and the United States this week. Until clearer signals emerge, EUR/USD may remain under pressure, with markets staying sensitive to any shifts in tariff discussions.
