April 7 (Reuters) - EUR/USD swung wildly on Monday on increased volatility but the pair also held near flat, and it may struggle to establish a lasting move in any direction until clarity over global trade tensions -- or the Fed's response to it -- emerges. U.S. President Donald Trump appears to be holding the line on his tariff policies, waiting for other countries make serious adjustments to existing trade policies, while reports over the weekend indicated some nations will hold talks to negotiate trade policies.

European Commission President Von der Leyen said Monday the EU is willing to negotiate with the U.S. No concrete trade proposals have emerged, however, leaving high levels of uncertainty and traders unwilling to place bets. Another source of uncertainty is the Fed's potential response to unease in the markets.

Though Fed Chair Jerome Powell leaned hawkish Friday by saying the surprisingly large tariffs could increase inflation, market participants are betting that the U.S. central bank will cut rates to underpin growth.

U.S. yields hit fresh lows Monday and SOFR futures priced in a lower terminal rate for the Fed . Until more clarity is available, EUR/USD may trade within the broader 1.0500-1.1200 range that was in place for most of the 2023-2024 period .
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(Christopher Romano is a Reuters market analyst. The views expressed are his own)