Euro Falls to Lowest Level Against Dollar in 6.5 Months

Forex - Following Trump's victory, concerns among investors regarding potential U.S. tariffs that could harm the Eurozone economy, along with political uncertainty in Germany, have driven the euro to its lowest level against the U.S. dollar in the last 6.5 months. The EURUSD fell to 1.06536, a level last seen on May 1. Analysts stated that reports in the U.S. press suggesting that President-elect Donald Trump will appoint Robert Lighthizer, perceived as a hawk on trade, to implement his trade policy have intensified pressure on the euro. ING strategist Chris Turner remarked, "The current thesis for dollar bears is that the implementation of tariffs and the Fed's adjustment to a less restrictive monetary policy will take some time. We do not share this view and believe that this clear election outcome could enhance U.S. consumer and business sentiment while also weighing on business sentiment elsewhere in the world."