China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
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.
