Skip to content Euro Recovers Slightly Amid US Political Changes
The euro increased to $1.0557, slightly rebounding from its one-year low of $1.0496 last week. This uptick happened as investors evaluated global market changes following Donald Trump’s victory in the U.S. presidential election. His win has pressured the euro because it raises concerns about potential tariffs on the European Union and China, a key European trading partner.
Who Will Trump Pick as Treasury Secretary
Meanwhile, investors are closely watching to see whom Trump will appoint as Treasury Secretary. Reports suggest former Federal Reserve governor Kevin Warsh and billionaire Marc Rowan are possible candidates.
Analysts think that Trump’s policies—like implementing tariffs and enacting tax cuts funded by debt—could boost inflation. This increase in inflation might lessen the Federal Reserve’s need to cut interest rates further.
ECB Rate Predictions Stall Amid Slow Growth
At the same time, Europe’s sluggish economic outlook has kept expectations low for any changes in the European Central Bank’s (ECB) policy. Markets are waiting for data on eurozone wages and upcoming Purchasing Managers’ Indexes (PMIs).
The ECB’s deposit rate is anticipated to be around 1.9% by July. Additionally, there’s cautious speculation about a possible rate cut later in the year.
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