Eurozone to shrug off Trump steel and aluminium tariffs? EUR/USD forecast to 1.08

Morgan Stanley saiy the euro may gain strength against the dollar if the EU manages to avoid heavy tariffs from Trump.

• They anticipated that in late 2025, the U.S. will introduce gradual and targeted tariffs on the EU, following the reinstatement of Section 232 tariffs on steel and aluminum.
• However, they believe these targeted measures are unlikely to significantly affect economic growth in the eurozone.
• Morgan Stanley maintains its recommendation to buy the euro, aiming for a target of $1.08.

Anyone making forecasts dependent on what Trump might do probably deserves a bravery medal.

This article was written by Eamonn Sheridan at www.forexlive.com.