Investing.com - The euro was broadly steady on Wednesday, while the dollar recovered mildly from recent losses, as traders gauged the European response to fresh tariffs from U.S. President Donald Trump and positioned for key consumer price index data.
The euro had inched down by 0.1% against the dollar to $1.0911 by 06:37 ET (10:37 GMT). The dollar index, which measure the greenback against a basket of its currency pairs, rose by 0.2% to 103.54.
Trump’s expanded tariffs on steel and aluminum came into effect on Wednesday, marking the latest salvo in his drive to overhaul the U.S. trading relationship with both friends and foes alike.
In a statement, the European Commission, the executive branch of the EU, said it "regrets" the U.S. decision to impose the levies, saying they would be "disruptive to transatlantic trade," harmful to business and consumers and result in higher prices.
The Commission said it would adopt two-part countermeasures in response. The first step will see the Commission allow the suspension of previous retaliatory tariffs to lapse on April 1, a move that officials said would respond to "economic harm" done to 8 billion euros in EU steel and aluminum exports.
Brussels also vowed to slap fresh tariffs on U.S. exports from next month as an answer to new American levies slapped on more than 18 billion euros in EU exports.
"The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate," said European Commission President Ursula von der Leyen.
Meanwhile, markets were eyeing a U.S. decision to resume intelligence sharing and military aid to Ukraine after Kyiv said it would support the Trump administration’s proposal for a 30-day ceasefire with Russia.
The Kremlin has yet to offer an official response. But Russian Foreign Minister Sergei Lavrov said that, in the context of a peace deal, it would avoid compromises that put people’s lives in danger, according to an interview cited by Russian agencies and Reuters.
Dollar recovers slightly ahead of CPI data
The greenback has been battered by growing fears of a U.S. recession, especially after a string of weak consumer sentiment and labor market readings in recent weeks.
Trump himself has declined to rule out the possibility of an economic downturn during a recent interview.
The focus is now on all-important CPI data for more cues on U.S. inflation and interest rates. The print is due later on Wednesday and is expected to show inflation remained sticky in February.
(Ambar Warrick contributed reporting.)