The U.S. dollar experienced a significant decline of 1% against the euro following President Donald Trump's announcement of new tariffs. This drop was observed across multiple financial news sources, indicating a broad market reaction to the policy change. Additionally, the S&P 500 futures on Wall Street fell by 2.24% in response to the announcement. The euro, in response, saw a substantial increase, rising more than 2% against the dollar and reaching 1.10 dollars, its highest level in six months. This surge marks the euro's biggest daily jump since 2015, reflecting investor sentiment shifting away from the dollar as a safe-haven currency. The tariffs, aimed at nearly 100 countries including the entire eurozone, were part of Trump's strategy to address what he described as the 'pillage' of America. The immediate market reaction suggests concerns over potential economic slowdowns in the U.S. due to these trade policies.
EUR/USD +2% (biggest one-day gain since 2015)
The euro rallied more than 2% against the dollar on Thursday and was set for its best day in more than nine years.
💲💶 The euro rallied more than 2% against the dollar on Thursday and was set for its best day in more than nine years as investors shunned the greenback after Trump announced tariffs, - Reuters https://t.co/tRq4UCMQBu