Published on 01/06/2025 at 2:09 p.m.
(Boursier.com) — In addition to European stock markets, the euro jumped after the ‘Washington Post’ reported that the American customs tariffs wanted by President-elect Donald Trump could be less aggressive than feared. Mr. Trump’s aides are studying proposed tariffs that would apply to all countries but would only concern certain sectors deemed essential for national or economic security, according to the daily, citing three people familiar with the subject.
“Kyle Chapman, foreign exchange analyst at Ballinger Group, said in a note published by ‘Reuters’: “It is not yet entirely clear what ‘critical imports’ refer to. However, it appears that officials are already preparing to water down Mr. Trump’s worst campaign promises by reducing the scope of the tariffs.
Furthermore, German inflation accelerated more than expected last month, supporting the European Central Bank’s plans to continue reducing interest rates gradually. Consumer prices, harmonized with European standards, increased by 2.9% last month compared to the previous year, against 2.4% in November and a consensus of 2.5%. The acceleration is due to energy and food costs, says the Bureau of Statistics. German annual inflation, calculated according to local standards, also increased more than expected, to +2.6%, against +2.4% consensus, and +2.2% in November. These data are in the same direction as those revealed last week in Spain where the annual increase in prices was faster than expected, at +2.8% last month. The figures for the entire euro zone will be presented tomorrow morning.
The euro is up more than 1.1% against the greenback, to $1.0425 between banks. The European currency nevertheless remains close to its two-year lows against Uncle Sam’s currency.
