Tariff News Lifts Dollar, Pressures EUR and Gold (05.30.2025)

The EUR/USD pair slipped after a brief rebound, pressured by renewed USD strength and the reactivation of Trump-era tariffs.

Meanwhile, the Japanese yen strengthened past 144 on rising rate hike bets following strong inflation in Tokyo. Gold retreated toward $3,290, on course for a weekly loss despite a midweek rally, while silver hovered around $33.10. GBP/USD traded slightly lower, but underlying support from BoE rate pause speculation limited losses. Technical levels continue to guide movement, with markets now looking at the PCE data and next week’s central bank meetings for direction.

EUR/USD Drifts Lower as Dollar Rebounds

EUR/USD is struggling to hold onto Thursday’s rebound from the 1.1200 region—its lowest in nearly 10 days—and trades with a slight bearish bias in Friday’s Asian session. The pair is hovering near the mid-1.1300s, down around 0.15% on the day.

The US Dollar regained some ground due to renewed safe-haven demand after a federal appeals court reinstated former President Trump’s broad trade tariffs, injecting fresh uncertainty into the markets. However, the dollar’s momentum remains limited by concerns over the US fiscal outlook and expectations of Fed rate cuts in 2025.

The euro finds partial support as Trump postponed tariffs on EU imports. Market focus now shifts to the upcoming US PCE inflation data, which may influence Fed policy expectations, followed by next Thursday’s ECB meeting for further direction.

Resistance is seen at 1.1400, with higher levels at 1.1460 and 1.1500. Support is located at 1.1300, followed by 1.1260 and 1.1210.

Yen Strengthens Beyond 144 on Inflation

The Japanese yen rose past 144 per dollar, extending gains after Tokyo’s core inflation beat expectations, increasing the likelihood of a 25 bps BOJ rate hike in July.

BOJ Governor Kazuo Ueda said recent forecast adjustments were due to global risks and lower oil prices but reaffirmed the short-term policy stance remains focused on the 2% inflation goal. The yen also gained from safe-haven flows after a U.S. court reinstated Trump’s reciprocal tariffs.

Resistance is at 144.50, with further resistance at 145.40 and 146.10. Support levels stand at 143.50, 143.00, and 142.10.

Gold Slips to $3,290 Before PCE Report

Gold fell to around $3,290 per ounce, heading for a weekly loss of over 1% as investors await the US PCE inflation report. On Thursday, gold briefly rose nearly 1% after a court allowed Trump’s tariffs to remain in place temporarily.

San Francisco Fed President Mary Daly noted that while two rate cuts are still possible this year, interest rates should stay steady for now. Gold is still up 0.2% for the month, aiming for its fifth straight monthly gain.

Support is at $3,250, followed by $3,205 and $3,150. Resistance stands at $3,325, with higher levels at $3,365 and $3,385.

GBP/USD Edges Lower Despite Fed Uncertainty

GBP/USD is under light selling pressure following Thursday’s rebound from the 1.3415 weekly low. The pair is trading around 1.3470, down 0.15% on the day, as traders await the US PCE report.

Repositioning ahead of the data is helping the USD regain slight momentum, though expectations of Fed rate cuts in 2025 and US fiscal concerns limit the upside. Meanwhile, the BoE is expected to hold rates on June 18, supporting the pound.

Key support lies at 1.3425, then 1.3165, and 1.2890. Resistance starts at 1.3600, followed by 1.3750 and 1.3850.

Silver Holds at $33.10, Eyes on US Data

Silver is trading near $33.10 Friday morning, after gaining on Thursday following weaker US jobless claims and GDP data. The renewed trade war concerns also contributed to the rally.

Legal uncertainty over Trump’s tariffs persists, with the latest developments leaning in his favor. Today’s upcoming data will likely set the tone for how silver closes the week.

Support begins at $32.80, followed by $32.50 and $31.80. Resistance levels are at $33.80, $34.20, and $34.90.