Euro/US dollar collects power that exceeds 1.1500, as Trump threatens the independence that feeds
- The euro/the US dollar is trading near 1.1520 in the early Asian session on Tuesday.
- The US dollar is widely located after Trump has multiplied the attacks on the Powell Federal Reserve.
- The European Union is considering modifying methane rules for us to support commercial conversations.
The euro/US dollar pair extends to about 1.1520 during the early Asian session on Tuesday, as it was pressured by the weakest US dollar (USD). The US dollar index (DXY) decreased to its lowest level since March 2022, near 98.30, as traders continued to lose confidence in the American economy.
US President Donald Trump increased his criticism of the Federal Reserve Chairman Jerome Powell on Monday via social media, describing him as a “great loser” and warns that the American economy may slow down if the Federal Reserve does not move to reduce prices immediately. Fears about the slowdown in the United States, the largest economy in the world, and more fears that Trump may shoot the Powell Powell Powell some of the pressure on Greenback and serve as the back wind of EUR/USD.
“It is really a buffet for any dollar … from the increasing uncertainty about self -harm from the tariff to the loss of faith even before Powell’s news,” said Fishno Varathon, former Macro Research Head of Asia in Japan in Mezoho.
Moreover, the European Union (the European Union) is considering amending methane bases for American gas to help commercial talks, Reuters said on Monday. The European Commission is working to display commercial talks with the United States to try to avoid the planned definitions of Trump, with both sides indicating that energy can be part of a broader commercial deal. Optimism surrounding commercial negotiation can provide some support for the joint currency against the dollar in the short term.
Common questions euro
The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.
Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.
Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
