Key points:

• Euro rally on hold for now
• Tariffs can stay, ruling says
• Dollar returns into spotlight

Dollar is back in style as currency traders try to get a hold of all the headlines that cause billions to slosh around in forex deals.

🥴 Euro Falters on Tariff News

• The euro lost its grip on early strength Friday, waving goodbye to the $1.14 handle as forex traders got whiplash from a week packed with headline landmines.
• The EURUSD dived right back toward $1.13 after brushing with $1.1390 in efforts to maintain the upside swing, which earlier this week reached a one-month high of $1.1418.

💸 Dollar Finds Demand

• A resurgent US dollar stepped back into the spotlight as political and legal drama in Washington dragged risk sentiment through the mud. A federal appeals court left Trump’s tariffs in place (for now), giving his trade strategy a second wind. The ruling came a day after a lower court said the tariffs were illegal.
• Investors quickly recalibrated, sending the dollar higher against most majors. The USDJPY was trading near the flatline after previously diving about 0.3% and the GBPUSD was lower on the day, floating near $1.3470.

👀 What’s Coming?

• Is that all for the euro rally at least for the foreseeable future? Tariff jitters highlight how fragile FX momentum can be, especially when political clarity is lacking and traders react to conflicting headlines.
• Looking ahead, the Federal Reserve’s favorite inflation metric — PCE — is coming later today. Markets expect the print to show price growth pulled back to 2.5% in April, down from 2.6% in March.

Source: Tradingview