The euro exchange rate jumped 1.5%, reaching $1.15, marking the highest level since November 2021. This increase was driven by the weakening of the US dollar amid growing concerns about the independence of the Federal Reserve.
The criticism voiced by former President Donald Trump directed public attention to the political influence on the country’s economic policy. Trump accused the central bank of contributing to the deterioration of the economic situation and called for a more flexible approach to monetary policy. Such statements raise concerns among investors, as the independence of the Federal Reserve is one of the key factors in maintaining trust in the dollar.
At the same time, the rise in the euro may also indicate more positive sentiments regarding economic recovery in the eurozone. Analysts note that an increasing number of funds and investors are viewing the euro as a safe alternative amid the uncertainty related to potential changes in US monetary policy.
In the coming days, traders will focus on upcoming economic activity indicators in both regions, which could further influence both the euro and dollar exchange rates. It is also expected that other central banks, such as the European Central Bank, may join the discussion regarding the political situation and its impact on financial markets.
Thus, the current strengthening of the euro could signal potential changes in the global economic landscape, making the evolving situation particularly interesting for analysts and investors.
