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Analysts at ANZ explained that the euro again shrugged off last week’s threat from Trump’s auto tariffs and strengthened in the face of equity market weakness.  

Key Quotes:

“That could possibly reflect the fact the US Treasury is drawing up curbs on companies with 25% Chinese ownership from buying “industrially significant technology” in the US. Washington’s trade policy seems to be becoming increasingly protectionist, which if confirmed could begin to affect capital flows.”

“Given the US’s large current account deficit (2.5% of GDP in Q1) and rising US budget deficit (forecast at 4.0% of GDP this year), the USD would be vulnerable in that environment.”