The euro has strengthened, exceeding $1.17, buoyed by positive German economic sentiment and a weakening US dollar due to geopolitical tensions and tariff threats. Market attention is focused on potential developments related to EU-US relations, particularly regarding President Trump’s stance at the World Economic Forum (WEF). The dollar’s safe-haven appeal appears limited, and investors are wary of Trump’s trade policies.
- The euro reached its highest level since January 6, surpassing $1.17.
- Germany’s ZEW Economic Sentiment Index rose to 59.6, the highest since July 2021, signaling economic optimism.
- US President Trump threatened 10% tariffs on several European countries to pressure Denmark into selling Greenland.
- The EU is considering retaliatory measures, including tariffs of up to €93 billion on US goods.
- ECB President Lagarde indicated that US tariffs on European imports could have a slight inflationary effect, particularly impacting Germany.
- Market focus is on President Trump’s comments at the WEF regarding EU-US relations and the Greenland issue.
The current climate favors potential continued appreciation of the asset. Positive economic signals emanating from Germany, coupled with a weakened dollar due to trade tensions and geopolitical factors, provide a supportive backdrop. Any escalation of trade disputes could further bolster its value. However, significant attention is placed on statements made by key figures, which may trigger shifts in investor sentiment and affect its trajectory.