Euro is Rising: Dollar Faces Challenges

Support for Euro's Rise: Strong Message from France

ING's currency strategist Francesco Pesole stated that the successful passage of French Prime Minister Lecornu's no-confidence votes yesterday provided significant support for the euro. This political development has increased confidence in the euro, strengthening expectations of a rise in international currency markets.

Why is the Dollar Under Pressure?

Pesole noted that the dollar is currently under pressure due to expectations of interest rate cuts by the Federal Reserve, U.S.-China trade tensions, and concerns about credit losses in U.S. regional banks. This situation has led to a depreciation of the dollar and caused investors to turn to alternative currencies like the euro.

1.1750 and 1.1800 Dollar Levels in Sight

Pesole emphasized that the dollar remains at a fragile point, stating that it is absolutely possible for the euro to rise above the 1.1750 dollar level. He also mentioned that the 1.1800 dollar level is starting to look very realistic again.

Trump and Putin Meeting Creating Expectations for Euro

Pesole noted that the upcoming meeting between Donald Trump and Vladimir Putin could increase speculation about a ceasefire in Ukraine, potentially creating a positive situation for the euro. Such international relations and possible reconciliations could move the currency markets.

Reflections in the Markets

All these factors lead investors to reassess their currency strategies, and anticipated fluctuations in the euro/dollar exchange rate may present new opportunities in financial markets. The rise of the euro could also contribute to economic stability for eurozone countries.