.jpg)
- Euro/US dollar is drifting to approximately 1,0950 in the early European session on Thursday, an increase of 0.85 % a day.
- Trump said the European Union will face 20 % under the new Trump policy.
- Traders are awaiting the PMI report for March ISM services for the United States for Fresh Ampus, which is scheduled to be later on Thursday.
The pair of the euro/US dollar He climbs to about 1,0950 during the early Asian session on Thursday. The edges of Greenback are lower against the euro (EUR) after US President Donald Trump announced a more aggressive tariff than expected against American commercial partners.
Trump plans to impose a 20 % tariff on European Union goods and higher duties on some of the country’s largest commercial partners. Customs duties will receive April 9. On Thursday, the European Commission President, Ursula von der Lin, criticized the imposition of Trump for definitions on the European Union goods and pledged revenge. Fears of the impact of the escalating world trade war and a large number of American data are weaker than expected for fear of the sharp global economic slowdown in the United States, which leads to a widespread decline in the dollar.
feeding Ruler Adriana Kogerer said on Wednesday that the increasing definitions in the United States could feed on inflation for a long time, which was expected. Kogler said she has supported the current interest rate as long as these upward risks continue to inflation. Traders are waiting for the unemployed demands in the United States, the final global S&P service managers, and ISM service managers. If reports show stronger results than expected, this may raise the dollar and create the back wind Euro/dollars.
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.
