On Tuesday, President Donald Trump announced a 25% import tariff on Canada and Mexico, as well as additional tariffs on imports from China and the European Union starting February 1. He remarked that the Eurozone has a trade surplus with the United States, which has escalated global trade tensions.

Investors have anticipated that the European Central Bank (ECB) will cut interest rates again on January 30, projecting the rate to reach 2% by the end of the year. Additionally, Boris Vujčić, one of the ECB policymakers, further commented that this rate cut is justified.

Source: Fxstreet