Why Is EUR/USD Nearing 1.1700? | Key Factors Driving the Currency Pair's Decline

EUR/USD Approaches Critical Support Level

The Trump meme coin priceEUR/USD currency pair continues its downward trajectory, touching the 1.1705 level during Wednesday's Asian trading hours. This movement reflects growing market uncertainty following recent trade policy announcements from Washington.

• Trade tensions escalate as new tariff threats emerge on key industrial commodities
• Market participants await clarity from upcoming Federal Reserve policy meeting minutes
• Technical indicators suggest potential for further downside if key support levels break

Trade Policy Developments Weigh on Market Sentiment

Recent statements from US officials regarding potential import tariffs on copper and other strategic materials have introduced fresh volatility into currency markets. These protectionist measures, if implemented, could significantly impact global trade flows and currency valuations.

Market analysts note that such trade policy uncertainty typically benefits traditional safe-haven currencies while putting pressure on risk-sensitive assets. This dynamic helps explain the current relative strength of the US dollar against its European counterpart.

Fed Policy Outlook Remains Market Focus

Currency traders continue to monitor developments from the Federal Reserve, with particular attention to the upcoming release of policy meeting minutes. These documents may provide valuable insights into the central bank's thinking regarding future monetary policy adjustments.

The financial community currently anticipates potential rate adjustments later this year, though the exact timing and magnitude remain subjects of active debate among market participants. The Fed's cautious approach to policy changes continues to influence currency valuations across major pairs.

Technical analysts highlight several key levels to watch in the coming sessions, with particular attention to how the pair responds to the 1.1700 psychological support level. Market participants should remain alert to potential volatility around major economic data releases and policy announcements.