Is Euro determined to make history?

The dollar struggles against the Hamorari from concerns about Federal Reserve’s independence when President Donald Trump enhances his campaign to give a greater influence on monetary policy and threaten the world at a sweeping rate.

Even if the US Department of Finance Market is much more liquid than the European market, the euro’s strong escape has made some people wonder whether a single currency can finally challenge the position of the US dollar as the world’s main reserve currency.

“The independence of the European central bank together with the rule of law can provide euros with excellence in the dollar in the long run,” said Claudio Wewel, FX strategist at J. Safra Sarasin Management of Sustainable Assets.

“President Trump’s trade war weakens trade relations between the US and its traditional partners and partners,” he added. “This presents a unique opportunity for the Euro region to increase role and share in global trade.”

Oil exporters in the Middle East are expected to continue to prefer dollar payments, but euros can be popular for trading in strong European sectors, including machines, medicines or green technology, he said.

The Dxy Dollar Index, measuring the currency against a basket of colleagues, has sank almost 10% this year to 98.00. Euro Eurusd has increased by almost 13% from the same period to more than $ 1.16.

But to be promoted, the Euro area needs to consolidate its economy and more Euro bonds, said Wewel.

The extraordinary value of Germany of 2.5 trillion euros is less than 10% of the US treasury market, worth around 30 trillion dollars.

Speed ​​up the development of Euro Digital, which was initiated in 2021, can also support demand for Euro, he added.

Wewel said there was more space to be appreciated by Euro in the long run, reaching $ 1.30.
Source: Reuters (Joice Alves)