Euro Strengthens Amid US-Europe Tensions, Dollar Under Pressure
The EUR/USD pair continued its gains for the third consecutive day and traded around 1.1730 in Asian trading on Wednesday. This strengthening occurred as the US dollar continued to weaken due to growing market concerns about the United States' stance on Greenland and the threat of new tariffs against European Union countries. President Donald Trump's assertion of his ambitions regarding Greenland and the planned additional tariffs fueled global economic uncertainty.
Tensions between the US and Europe escalated after the European Parliament planned to suspend approval of a trade deal with the US. This move was triggered by threats of 10% tariffs on eight EU countries and 200% tariffs on French wine. This situation made investors more cautious and led to a weakening of the US dollar, although the decline was somewhat offset by still-strong US labor market data.
Meanwhile, the euro received support from better-than-expected German economic data. The German ZEW Economic Sentiment Index jumped to its highest level since July 2021, signaling growing optimism about the future economic recovery. This condition helped the Euro remain strong even though global markets remained clouded by uncertainty and rising risk aversion. (az)
Source: Newsmaker.id
