The euro experiences a remarkable impulse this Thursday by overcoming The $ 1.10 barrierreaching its highest level since the beginning of October. This upward movement occurred after the announcement of new tariffs by the president of the United States, Donald Trump.
From ING Research It stands out that the euro is positioned as A solid and liquid alternative to the dollar, whose current problems, such as the lowest consumption in the United States, seem more significant than those of the euro. This purchase argument has contributed to the recent rebound of the European currency.
In a medium -term analysis, it is observed that «Washington looks for a weaker dollar«, As reflected in Trump’s executive order, which shares similarities with Stephen’s Mar-Alago agreement.
Although a global commercial war could be considered negative for the euro in theory, in practice, the determining factor for the EUR/USD currently is the weakness of the US economy.
According to experts, a possible significant fall in US actions, which would lead to an even greater decrease in interest rates, weaken American exceptionalism and could boost EUR/USD above 1.10. The medium -term key resistance zone is around 1.11/12.