Euro faces potential imminent U.S. tariff hit
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Odaily reports that UBS Global Wealth Management analysts stated in a report that the euro appears fragile due to Trump's threat to impose tariffs on the EU. They said Trump's focus on tariffs may next turn to Europe. "Our base case is that specific tariffs on EU autos and pharmaceuticals will trigger retaliation." For the euro, the negative reaction "is almost inevitable." In addition to tariff considerations, the macroeconomic backdrop in the US should support the dollar. In terms of monetary policy, the Fed is expected to keep rates unchanged while the ECB continues to cut rates. UBS recommends selling EUR/USD, with a target price of 1.0000 and a stop loss at 1.1575. (Jinshi)
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