Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
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.
