Euro is testing our patience today. The currency is fresh out of important reports and news that we have to look out for, but a bunch of very minor reports from all over Europe are not going to let us off easy, plus, there is a new trade war and scandal breaking out as we speak, so it is only natural that we are going to see EUR/USD chart plunge lower. But what is going on?

Well, the thing that is happening right now can’t be described in any other way as another wave of trade war, that has been largely played out by China and USA. There were attempts to impose tariffs on EU, but they were always cast aside. But not this time. Luck ran out for the Union and a lot of their production was tariffed by USA overnight. Planes, cheese and whiskey – these are the unlikely targets for tariffs. Of course the economy of the EU took a hit and as a result we can see that euro couldn’t exact fight off the unnecessary fall that follow a perfect recovery of the currency.

Of course, we were hoping that the plunge was not going to come so soon, but we couldn’t have anticipated tariffs being imposed, is that was an oversight on our part. Now we need to wait for the answer of EU and the possible subsequent reaction of USD.

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