The euro was strengthened after the announcement of an infrastructure fund proposed by Germany that feeds growth expectations in the “old continent.”
The euro went up on Wednesday to a four -month peak against the dollarsince an infrastructure fund of 500,000 million euros (US $ 531,000 million) proposed by Germany promoted Europe’s growth prospects and could compensate for world commercial tensions.
The single European currency played a maximum since November 8 and Then climbed 1.5% au $ s1,0791, In its greatest daily gain since November 2023. The price was also strengthened in front of other currencies, such as sterling pound, Japanese yen and the Swiss Franco, and He is on his way to his best week since November 2022.
While, The dollar fell to most coinsaffected by an uncertain growth perspective promoted by fears on the impact of tariffs on inflation and economy. The dollar index, which measures the American currency in front of a six -counterpart basket, fell 1.2% to 104.29 and reached its lowest level since November 8.
The projections of a recession in the US increase while more tariffs are imposed
Investors are now beginning to deduct the possibility of a total contraction of the United States, and Kalshi predictions operators currently hint a 42% probability of a recession in the world’s largest economy This year.
The signs of slowing economic growth in the United States, in part as a consequence of uncertainty about tariffsthey harmed the American currency. On Tuesday, the US president, Donald Trump, again promised reciprocal tariffs from April in his first speech against Congress since he assumed the position
The 25% tariffs of the president of the United States against imports from Mexico and Canada entered into force on Tuesday, along with a duplication of tariffs on Chinese products at 20%. Canada and China quickly respondedwhile the Mexican president, Claudia Sheinbaum, promised reprisals, but without giving details.
Meanwhile, Trump It will exempt car manufacturers from their 25% tariffs to Canada and Mexico For a month, as long as they comply with the terms of an existing regional free trade agreement, the White House said Wednesday.
Source: Ambito
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