EUR/USD HITS THREE-YEAR HIGH AS THE US DOLLAR SUFFERS HEAVY LOSSES
EUR/USD HITS THREE-YEAR HIGH AS THE US DOLLAR SUFFERS HEAVY LOSSES
The EUR/USD currency pair has surged to a three-year high, reflecting significant shifts in global financial markets.
This movement is primarily attributed to declining investor confidence in U.S. economic prospects and escalating trade tensions under President Donald Trump's administration.
The U.S. Dollar Index has fallen below the 100 mark, reaching levels not seen since July 2023.
This decline is largely due to escalating trade tensions, particularly following President Trump's announcement of a 10% universal tariff and increased duties on Chinese imports, which have raised concerns about potential trade wars.
Investors are engaging in the "Sell America" trade, leading to a significant sell-off of U.S. assets, including Treasury bonds and equities.
This shift is driven by concerns over U.S. economic policies and trade relations, contributing to the dollar's depreciation.
As the U.S. dollar weakens, the euro has gained strength, reaching a three-year high against the dollar.
This appreciation is also supported by the European Central Bank's measured approach to monetary policy, which contrasts with the U.S.'s more aggressive stance.
The decline in the U.S. dollar and Treasury securities has led investors to seek safe-haven assets such as the Japanese yen, Swiss franc, and gold.
