Trade war: Tariff tensions resurface after EU-US setback – Danske Bank

💡 DMK Insight

Trade tensions are heating up again, and here’s why that matters for traders: the European Parliament’s delay in ratifying the EU-US trade deal signals potential volatility ahead. With Trump’s unilateral 15% tariff looming, traders should keep a close eye on how this affects not just forex pairs like EUR/USD but also commodities that rely on trade stability. If the tariff goes into effect, we could see a ripple effect across markets, particularly in sectors sensitive to trade policies, like agriculture and manufacturing. Watch for key technical levels on the EUR/USD; a break below recent support could trigger further selling pressure. Additionally, monitor how institutional players react—if they start hedging against these risks, it could amplify market movements. On the flip side, if negotiations take a positive turn, we might see a quick rebound. But right now, the uncertainty is palpable, and traders need to be prepared for potential spikes in volatility as the situation develops. Keep an eye on upcoming economic indicators that could sway sentiment in either direction.