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U.S. Tariff Threat Against Europe Presents Risk to Euro -- Market Talk

Dow Jones01-19 23:16

1516 GMT - President Trump's vow to impose tariffs against several European nations poses a threat to the euro, Danske Bank analyst Mohamad Al-Saraf says in a note. Any escalation in geopolitical tensions and/or renewed euro-area weakness are key risks to Danske's forecast for the euro to strengthen against the dollar over the medium term, he says. For now, the bank still sees the euro rising to $1.23 in 12 months from $1.1632 currently as it expects the Federal Reserve to deliver two additional interest rate cuts this year while the European Central Bank keeps rates unchanged. Danske sees additional euro support from a recovering European asset market, fading confidence in U.S. institutions and investors taking increased protection against a weaker dollar. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

January 19, 2026 10:16 ET (15:16 GMT)

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