The xrp price prediction next bull runEUR/USD currency pair demonstrates limited momentum during Monday's Asian session, consolidating near 1.1360 following two consecutive days of appreciation. This sideways movement occurs despite ongoing pressure on the US Dollar (USD), as renewed trade hostilities between the world's two largest economies dampen risk appetite across financial markets.
Market participants remain cautious after China's Ministry of Finance implemented dramatic tariff increases on US imports late last week, elevating duties to 125% from previous levels of 84%. This retaliatory measure directly responds to Washington's decision to impose 145% tariffs on Chinese goods. European Union officials have attempted to mediate the situation by postponing planned counter-tariffs for three months, mirroring similar conciliatory gestures from US trade representatives.
Friedrich Merz, the incoming German Chancellor, shared critical perspectives regarding current US economic policies during a weekend interview. "The present administration's approach substantially elevates the probability of premature financial instability," Merz cautioned in discussions with Handelsblatt. The German leader advocated for comprehensive tariff elimination, proposing that "complete duty-free trade would generate mutual benefits for transatlantic partners."
The US Dollar Index (DXY) continues its downward trajectory, recording losses for three successive trading periods and approaching multi-year lows beneath the 100.00 threshold. This persistent depreciation reflects growing market concerns about economic fundamentals, reinforced by disappointing data releases and cautious monetary policy statements.
Recent economic indicators paint a mixed picture of US economic health. The University of Michigan's consumer sentiment gauge fell to 50.8 this month while inflation expectations jumped to 6.7%. March's Producer Price Index showed a 2.7% annual increase, moderating from February's 3.2% reading, with core inflation measures similarly decelerating to 3.3%. Labor market data revealed modest increases in initial jobless claims alongside reductions in continuing claims, suggesting sector-specific challenges rather than broad deterioration.
Federal Reserve official Neel Kashkari emphasized the psychological impact of trade conflicts during a Sunday television appearance. "The current climate represents the most significant confidence shock during my decade with the Federal Reserve, excluding the initial pandemic disruption in March 2020," the Minneapolis Fed President observed. Kashkari stressed that economic consequences will largely depend on the duration and resolution of existing trade uncertainties.
