The EURUSD currency pair is located above EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. Maintaining the drawn ascending channel will lead to a continuation of the upward trend towards the channel ceiling. A correction of this currency pair towards the demand zone will provide us with its next opportunity to buy it.
Donald Trump’s remarks about imposing 25% tariffs on imports from Canada and Mexico have sparked concerns among European companies. A report by Bank of America (BofA) highlights dozens of European firms that are vulnerable to these tariffs due to their supply chain dependencies and revenue exposure.
Among these companies, the Italian automaker Stellantis stands out. According to the report, Stellantis operates 16 supply chain links in Canada and derives 47% of its total revenue from North America. Similarly, the German auto giant BMW has 18 supply chain links in Canada and generates 26% of its revenue from the United States.
In the energy sector, the UK-based utility company National Grid, with a market value of €58 billion, has a significant presence in the U.S., where 50% of its assets and 54% of its revenue originate. Although its tangible supply chain exposure in Mexico and Canada is relatively low, its extensive operations in the U.S. make it highly susceptible to the negative impacts of these tariffs.
Eurozone Bank Lending Survey – January 2025:
• Credit Standards: In Q4 2024, corporate credit standards tightened due to rising perceived risks and reduced risk tolerance.
• Mortgage Loans: Credit standards for household mortgages remained unchanged, but lending conditions for consumer credit tightened further.
• Loan Demand: Mortgage loan demand surged significantly, while corporate loan demand remained weak.
According to analysts at Standard Chartered, financial markets are currently overly focused on Donald Trump’s economic policies, potentially overlooking the risks associated with this week’s Federal Reserve meeting.
The Federal Reserve is set to announce its latest interest rate decision today following a two-day meeting. It is widely expected that the interest rate will remain within the current range of 4.25% to 4.5%. However, investors are keen to find clues regarding the timing of future rate cuts. Based on market pricing, expectations suggest a 40-basis-point rate cut by December.
A key unknown factor influencing this outlook is Donald Trump’s policies. He has recently called on the Fed to lower interest rates. Additionally, his tariff policies, which include imposing high tariffs on both allies and competitors, could further drive inflationary pressures.
As a result, the Fed may proceed cautiously with its rate-cut cycle. However, Trump’s administration has not yet implemented widespread tariffs, though he has threatened to do so.
Meanwhile, some Fed officials have recently signaled a more hawkish stance. There is also speculation that the Fed may seek to assert its independence at the beginning of Trump’s new presidential term by resisting his demands. If the Fed takes such a position, Trump may respond aggressively, which could further heighten market uncertainty.
Donald Trump’s remarks about imposing 25% tariffs on imports from Canada and Mexico have sparked concerns among European companies. A report by Bank of America (BofA) highlights dozens of European firms that are vulnerable to these tariffs due to their supply chain dependencies and revenue exposure.
Among these companies, the Italian automaker Stellantis stands out. According to the report, Stellantis operates 16 supply chain links in Canada and derives 47% of its total revenue from North America. Similarly, the German auto giant BMW has 18 supply chain links in Canada and generates 26% of its revenue from the United States.
In the energy sector, the UK-based utility company National Grid, with a market value of €58 billion, has a significant presence in the U.S., where 50% of its assets and 54% of its revenue originate. Although its tangible supply chain exposure in Mexico and Canada is relatively low, its extensive operations in the U.S. make it highly susceptible to the negative impacts of these tariffs.
Eurozone Bank Lending Survey – January 2025:
• Credit Standards: In Q4 2024, corporate credit standards tightened due to rising perceived risks and reduced risk tolerance.
• Mortgage Loans: Credit standards for household mortgages remained unchanged, but lending conditions for consumer credit tightened further.
• Loan Demand: Mortgage loan demand surged significantly, while corporate loan demand remained weak.
According to analysts at Standard Chartered, financial markets are currently overly focused on Donald Trump’s economic policies, potentially overlooking the risks associated with this week’s Federal Reserve meeting.
The Federal Reserve is set to announce its latest interest rate decision today following a two-day meeting. It is widely expected that the interest rate will remain within the current range of 4.25% to 4.5%. However, investors are keen to find clues regarding the timing of future rate cuts. Based on market pricing, expectations suggest a 40-basis-point rate cut by December.
A key unknown factor influencing this outlook is Donald Trump’s policies. He has recently called on the Fed to lower interest rates. Additionally, his tariff policies, which include imposing high tariffs on both allies and competitors, could further drive inflationary pressures.
As a result, the Fed may proceed cautiously with its rate-cut cycle. However, Trump’s administration has not yet implemented widespread tariffs, though he has threatened to do so.
Meanwhile, some Fed officials have recently signaled a more hawkish stance. There is also speculation that the Fed may seek to assert its independence at the beginning of Trump’s new presidential term by resisting his demands. If the Fed takes such a position, Trump may respond aggressively, which could further heighten market uncertainty.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.