EBC Markets Briefing | Euro rises amid China-US tariff face-off
The euro edged higher on Wednesday, helped by reports Germany's conservatives had reached a deal with the centre-left Social Democrats to form a government, easing political concerns in the EU's largest economy.
Germany is on track for a third year of recession for the first time in history, analysts said. Before the fiscal stimulus fully kicks in, the new government can do little to protect its export industry.
The European Commission has invited the sectors most impacted by tariffs to an in-person meeting on Thursday, according to Reuters, as the commission weighs new trade partnerships and further countermeasures.
The president of the commission Ursula von der Leyen also urged China on Tuesday to ensure a negotiated solution to problems caused by the sweeping import tariffs imposed by Trump.
Trump showed no sign of backing away from the new increase of 50% on China, which goes into effect in just a few hours, accusing Beijing of manipulating the yuan to offset the levies.
Fed fund futures jumped in early Asian trade to imply around 111-bp cuts this year. Chair Powel is facing a dilemma of whether he should defend slowing economy or contain sticky inflation.
The single currency has been stuck in a tight range, so it may need to breach 1.1050 to continue its rally. Otherwise it would likely retest 1.0900 and keep consolidating.
EBC Wealth Management Expertise Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Group Corporate News or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
EBC Markets Briefing | "Blue Wave" poised to sweep across stock markets
Stocks sink amid AI wipeout, dollar shines ahead of NFP
US Payrolls in Focus as Wall Street Rout and Falling Yields Cap the Dollar | 6th November, 2026
Week Ahead – Inflation and geopolitics in focus as US political landscape shifts
The dollar saves the day
Tech Stocks Lead US Selloff Ahead of Payrolls
Technical Analysis – USDJPY stays rangebound, pinned at support near 158.00
