EUR/USD remains steady around 1.1800 as markets await the US PPI data

EUR/USD Holds Steady Amid Mixed Economic Signals

EUR/USD is trading with little movement around the 1.1800 level in early Asian hours on Friday. The currency pair remains stable as subdued inflation data from the Eurozone balances out the uncertainty surrounding US tariffs. Investors are now turning their attention to Germany’s preliminary Consumer Price Index (CPI) figures, which could provide further insight into the direction of monetary policy. Meanwhile, the US is set to release its Producer Price Index (PPI) report.

A recent decision by the US Supreme Court has limited the administration’s broad authority to implement emergency tariffs. In response, President Donald Trump criticized the ruling and announced a sweeping 15% tariff on imports.

US Trade Representative Jamieson Greer indicated on Wednesday that Trump intends to increase this tariff to 15% for numerous countries in the near future. However, this measure is only valid for 150 days unless Congress grants an extension. Such swift policy changes may put pressure on the US dollar, potentially benefiting the EUR/USD pair.

On the European side, lawmakers in the European Union have postponed ratification of the bloc’s trade agreement with the US, citing uncertainty over the evolving US tariff strategy. “We await clarification from our American partners regarding the current situation,” stated European Commission spokesperson Olof Gill.

Eurozone inflation dropped to 1.7% in January, the lowest level in 16 months, while core inflation slowed to 2.2% year-over-year. These figures have heightened expectations that the European Central Bank (ECB) may pursue a more accommodative policy stance, which could put additional pressure on the euro relative to the US dollar.