Euro Weakens Slightly, Investors Focus on Davos & Trump
The EUR/USD pair recorded a moderate decline on Wednesday, hovering just above the 1.1700 level. This weakening occurred after the euro strengthened by around 1.2% in the previous two days. Despite the slight decline, the euro remained relatively strong as the US dollar remained under pressure.
The US dollar weakened due to a sell-off in US assets. This sentiment was fueled by US President Donald Trump's threat to impose additional tariffs on several European countries. This threat arose after Europe rejected the US plan to purchase Greenland.
The market's focus is now on Trump's speech at the World Economic Summit in Davos, which will be delivered later in the day. Investors hope this meeting will help ease tensions between the US and Europe. However, Trump's plan to release private messages from European leaders has only increased the threat.
Despite experiencing a slight correction, the euro still received support from a weaker dollar and investor caution regarding US assets. The market is likely awaiting clarity on policy direction and official statements from world leaders.
In addition to Trump, European Central Bank President Christine Lagarde is also holding a meeting and speaking in Davos. However, his statement is not expected to significantly move the market as the primary focus remains on geopolitical developments and US-Europe relations. (alg)
Source: Newsmaker.id
