Equilibrium USD Price & Performance (EQUSD)

The euro's strength against the U.S. dollar is faltering as market sentiment shifts. Concerns over upcoming U.S.-EU reciprocal tariffs, expected in April, and Germany's internal political negotiations over a major infrastructure package are contributing to uncertainty. Investors are closely watching developments that could affect the EUR/USD trading range.1

Germany's ZEW Economic Sentiment index for March exceeded expectations, rising to 51.6. However, a decline in Current Conditions tempered enthusiasm. The EUR/USD pair remained subdued as traders await the outcome of Germany's parliamentary vote on debt reform, which could significantly influence market dynamics.2

The Bank of Canada reduced its interest rate by 25 basis points, marking its seventh consecutive cut. Despite this, the Canadian dollar gained support from rising oil prices, which counteracted the rate cut's effects. The USD/CAD pair saw volatility, reflecting ongoing trade negotiations and tariff uncertainties between the U.S. and Canada.3