Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Euro Declines as Dollar Strengthens After Trump’s Election Victory
EUR/USD Dips Amid U.S. Economic Confidence
Following Donald Trump’s decisive election win, the euro experienced a sharp 1.7% drop against the dollar, reaching $1.0741. With Republicans possibly controlling both the Senate and House of Representatives, this "red sweep" will likely boost U.S. economic policies that favor the dollar's strength.
Analysts Predict Euro-Dollar Parity Possibility
According to JPMorgan analysts, a full Republican legislative path under Trump could further weaken the euro. If economic resilience in the U.S. endures, given Trump's anticipated policies, including fiscal stimulus and tariffs, the EUR/USD exchange rate may approach parity (1.00).
Global Impact and ECB's Possible Response
The European Central Bank (ECB) might lower interest rates to counteract potential economic shocks from Trump’s policies, adding further pressure on the euro. Meanwhile, the Eurozone’s dependency on monetary rather than fiscal policy contrasts with the more dynamic U.S. economic approach, likely amplifying the euro's decline.
Historical Context and Future Moves
JPMorgan highlights a historical precedent: during 2018-2019, the dollar strengthened amid trade uncertainties. Analysts now recommend short positions on EUR/CHF due to lower sensitivity to U.S. rates and limited Swiss National Bank intervention.
Key Caveat: Potential U.S. Rate Adjustments
The main risk to this outlook is a potential drop in U.S. interest rates, which could moderate some of the anticipated euro depreciation.
