As the cryptocurrency market is hit by the situation in the Middle East and various investment dynamics are frequent, the foreign exchange market is also undergoing crucial changes. Golden Finance reports that the euro has shown a significant short-term decline against the US dollar. As of the time of publication, the euro has rapidly declined against the US dollar from its intraday high of 1.1586 and is currently trading around 1.1530, with an intraday decline of 0.4%.
In terms of news, the recent fluctuation of the euro against the US dollar may be related to a major trade piece of news. It is reported that the European Commission is prepared to accept a uniform 10% tariff imposed by the United States under clear conditions. This news broke the deadlock of the previous tariff negotiations between the United States and Europe, triggering a re-evaluation of the direction of trade relations between the two countries in the market. Previously, the United States imposed a 25% tariff on European automobile, steel and aluminum manufacturers. Although it reduced the increase to the benchmark tariff of 10% on April 2nd and gave a 90-day negotiation period, no breakthrough has been reached in the US-EU negotiations. The current change in the attitude of the European Union undoubtedly brings new variables to bilateral trade relations.
Judging from the market reaction, investors responded promptly to this news. Once the European Union really accepts the 10% tariff imposed by the United States, it means that the price competitiveness of European export goods in the US market will be affected to a certain extent, which may further weaken the export-oriented economy of the Eurozone. Some foreign exchange traders said in interviews that they have adjusted their trading strategies for the euro against the US dollar based on this news and hold a bearish attitude towards the euro in the short term.
There were significant differences within the European Union previously on whether to accept the 10% tariff imposed by the United States. Benjamin Dusa, Sweden’s Minister of Foreign Aid and Trade, once made a tough statement that if the EU could only obtain the same 10% benchmark tariff conditions as those stipulated in the US-UK agreement, the US would be waiting for the EU to retaliate. But Hungarian Deputy Foreign Minister Mazar Levente rarely expressed support for retaining the benchmark tariff, saying, “This is a fair plan.” The current attitude that the European Commission tends to accept might imply that some kind of compromise has been reached internally.
Subsequently, the United States and Europe will conduct further negotiations on “clear conditions”. If the negotiations proceed smoothly and an agreement is eventually reached, the exchange rate of the euro against the US dollar may stabilize in the short term. However, in the long term, the actual impact of the agreement on the economic fundamentals of both sides still needs to be considered. Golden Finance will continue to follow the progress of the US-EU trade negotiations and the exchange rate trend of the euro against the US dollar.
Meanwhile, in the cryptocurrency market, Michael Saylor, the co-founder of Strategy, hinted that he would purchase more Bitcoin when the traditional financial market opened on Monday, triggering discussions in the market about the safe-haven attributes of crypto assets. The transaction where whale investors withdrew 1.54 million US dollars of USDC from Binance to purchase 1.21 million FARTCOIN also led to a significant increase in the price and market heat of FARTCOIN. In the complex and volatile global financial environment, the interaction effect among various asset classes has become increasingly prominent, and investors need to closely monitor various market dynamics.
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- U.S. investors’ buying has soared, and Bitcoin may embark on a healthy upward cycle
- The 40-fold shorted BTC giant whale cut its losses in the early hours of the morning, incurring a loss of 5.88 million US dollars
