UBS Analysts Warn Of Euro Vulnerability Amid Potential Tariffs

According to Odaily, analysts from UBS Global Wealth Management have expressed concerns over the euro's vulnerability due to U.S. President Donald Trump's threats to impose tariffs on the European Union. The analysts suggest that Trump's focus on tariffs may soon shift towards Europe, with a potential scenario involving specific tariffs on EU automobiles and pharmaceuticals, leading to reciprocal actions. They believe that a negative impact on the euro is "almost inevitable." Beyond tariff considerations, the U.S. macroeconomic environment is expected to support the dollar. In terms of monetary policy, the Federal Reserve is anticipated to maintain its interest rates, while the European Central Bank is likely to continue cutting rates. UBS recommends selling the euro against the dollar, setting a target price of 1.0000 and a stop-loss at 1.0575.