Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Copper Prices Hit Record Highs as Metals Rally Gains Momentum on Geopolitical Tensions 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support 
South Korea Industry Minister Heads to Washington Amid U.S. Tariff Hike Concerns 
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures 
The EUR/USD currency pair is expected to decline if the trade conflict between the United States and Europe were to intensify, according to the latest research report from Commerzbank.
The focus is turning to US data today and tomorrow as concern over a weakening US economy are mounting following a weak manufacturing ISM index and yesterday's downward revision in last month's ADP employment figures.
In addition, news of growing trade tensions between the US and Europe is weighing on investor sentiment. Interestingly, this too put pressure on the US dollar yesterday, while in theory, it should support the US currency as the imposition of tariffs on EU imports should be inflationary and thus raise the US rate outlook, the report added.
Instead, the threat of a trade war with Europe is seen as deteriorating the US growth outlook and market rate expectations, as a result, have started to fall again.
While indeed another US trade war would weigh on the US economy and may even force the Fed to cut interest rates more aggressively, it would be an even bigger burden on Europe which is already seen at the brink of a recession, Commerzbank further noted in the report.
