Euro plummets amid tariff threats and political turmoil
EUR/USD has dropped over 0.6% to $1.04607, reflecting ongoing geopolitical tensions and economic uncertainty in the Eurozone. In November, the euro experienced a 3% decline, its worst monthly performance in over a year, raising concerns about parity with the US dollar. Trump's recent threats to impose 100% tariffs on countries moving away from the US dollar have further pressured the euro. Meanwhile, the European Central Bank's dovish signals, including potential rate cuts of up to 50 basis points in December, add to the euro's challenges. On the other hand, the US dollar index has risen nearly 1% to 106.7, bolstered by strong economic indicators like the ISM Manufacturing PMI. As traders digest these developments, the EUR/USD may continue to face downward pressure. Share your insights on how these factors could shape the pair's trajectory in the coming weeks.
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