Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
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.
