EUR/USD has dropped toward 1.03 following another tariff headline over the weekend, with Trump announcing that he will impose 25% tariffs on US imports of steel and aluminum - primarily impacting Canada, Mexico, Brazil, and China, Danske Bank's FX analysts report. 

EUR/USD to trade in the 1.04-1.05 range

"Tariff fears are strengthening the broad USD and pushing short-term US inflation expectations higher and prompting markets to price in faster rate cuts outside of the US. Yesterday saw mostly sideways trading, and a similar pattern is likely today ahead of tomorrow's US CPI print and Fed Chair Powell's testimony before Congress." 

"Our tactical bias remains toward lower US yields and a broadly weaker USD. Historically, the broad USD tends to weaken when the manufacturing sector improves relative to the services sector, which we explore in this week's RtM USD." 

"In the near term, we expect EUR/USD to trade in the 1.04-1.05 range, while maintaining our strategic view that EUR/USD could test parity over the course of the year."