The euro continues to win the US dollar in its particular pulse in the currency market. The eurozone currency is changed to more than $ 1.15, which places the cross between them at levels not seen since November 2021. However, the success of a rise euro comes more for the weakness of its rival than by its own strength. Donald Trump’s obstination because the United States Federal Reserve more and faster its monetary policy is leading to the person in charge of the White House to Find the dismissal of Jerome Powell. This has the US dollar in front of the euro, but also in front of the Japanese Yen or the sterling pound. It also drives the gold to new historical maximums above $ 3,400 per ounce.
The American currency is not reacting well to the possibility that Donald Trump press Powell to resign as president of the Fed. “The Powell’s dismissing perspective is a new blow to US assets, after the aggressive commercial tariffs of Washington Avivaran The fear of a recession and feed doubts about the position of the treasure bonds as a preferential refuge. Trump has affirmed that a cheaper currency would make the country’s products more competitive, which would increase the pressure on the dollar, “they explain from Bloomberg.
In a session in which the European stock market remains closed by festive, this means seeing the euro winning 1.2% against the dollar and to be at its best between both currencies in more than four years. In 2025 alone, it rises more than 11.5%. If the year ended, it would be the most bullish year for the currency of the euro zone since 2017. The situation takes majority if one takes into account that at the beginning of January there were several analysis firms that predicted the parity for some time of the present year (the crossing became at $ 1.02). Today these expectations are completely obsolete.
Donald Trump’s interference in the Federal Reserve not only weakens the dollar against the euro. It also gives ground to Other currencies such as Japanese Yen or sterling pound. The dollar index (which follows the performance of the ten largest currencies of the world at its intersection against the dollar) has been at its lowest level since the end of December 2023. Among the greatest currencies, all are revalued at its crossroads with the American currency on Monday. Thus, so far this year they only exceed the progress of the euro, the Swedish crown, the Swiss Franco and the Japanese yen, with revaluation since January 16.5%, 12.3%and 11.7%, respectively.
This means that there are currencies that beat the euro in 2025. While the euro gets out of the pound by more than 4% since the year began, in front of the Japanese Yen is left 0.2% while in front of the Swiss Franco, where the National Central Bank has the reference of the money in 0.25%, almost 1% is left.
The strength of the euro against the dollar allows the European Central Bank to lower interest rates against immobility seen to date in the United States Federal Reserve. The ECB faces a deterioration of economic perspectives, which is why it decided to cut the 25 basic points. The measure was provided by the 4% euro rise in the last month […]. Consequently, European interest rates continued to stabilize, after having erased almost all the rebound of Yields After Berlin’s decision to bet on a stimulus program, “comment from Edmond by Rothschild AM.
The impulse that the euro maintains against the dollar will go to more in the next dates, according to the market expectations that collect Bloomberg. In fact, and hopes that by 2026 a average price of $ 1.18 for each euro. Experts already collect that the dollar will not be able to recover in a context of volatility as the current one in which the Fed will also tend to cut interest rates later than soon. Meanwhile, the investor will not go to Green ticket As an active refuge, against what happened in previous cases. The damage that the trade war can make to the American currency frightens investors and that gives the euro greater weight as a reference for the market.
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