Trump's Tariff Plans Impact the Dollar as Euro Sees a Swift Comeback
The Euro has rebounded from a two-year low to reach the level of 1.04. While inflation data from across Europe draws market attention, tariff news from the U.S. has led to a depreciation of the dollar. Reports suggest that the Trump administration is working on tariff plans that will only cover import sectors deemed critical from a national or economic security standpoint. Following this news, the USD/JPY pair fell from 157.80 to 157.40, while the EUR/USD pair gained strength with an increase of nearly 1%.
Rapid Increase in Euro/TL
Today, demand for the Euro has accelerated in global markets, and a rapid upward movement was recorded in the Euro/TL pair. While the Dollar/TL remained stable at the level of 34.32, the Euro/TL pair surged to 36.88 with an increase of over 1.2%.
Inflation Expectations in Europe
Inflation data in Europe is crucial for the markets. The Eurozone inflation data that will be announced following Germany's December inflation figures will play a key role in determining the economic outlook. In Spain, inflation in December exceeded expectations, while core inflation also showed a greater than expected increase. The annual inflation rate in the Eurozone is expected to rise to 2.4% in December. This increase is largely attributed to rising energy and food prices, while a slight decrease in core inflation is anticipated. This situation strengthens the possibility that the European Central Bank will continue its interest rate reductions.
Impact of U.S. Tariffs on the Dollar
The Trump administration's focus on tariffs targeting critical imports has created uncertainty in the markets. It has been reported that these tariffs will be applied to all countries but will only cover specific sectors. However, the details of these policies and their feasibility remain unclear. This uncertainty has led to a depreciation of the dollar and a rapid increase in demand for major currencies like the Japanese Yen and Euro. In recent hours, the dollar index has also seen a decline of nearly 1%, falling below 1.08. Analysts state that Trump’s announcements and market expectations will continue to be crucial in this process.
Economic Data Shaping Markets
Despite a slight growth observed in Germany's services sector, economic activity across the Eurozone has contracted for the second consecutive month. This situation affects expectations regarding the European Central Bank's interest rate policies, while upcoming Non-Farm Payroll data from the U.S. and Trump’s tariff policies continue to create fluctuations in global markets. The markets are closely monitoring the inflation and employment data set to be released this week, as well as details regarding the Trump administration's trade policies.