The euro has decreased on Monday driven by persisting fears of the trade war as well as expanding political instability in Germany.
For now, the euro-to-US dollar exchange rate decreased to 1.1641. A similar dynamics were seen in the pairs with yen and franc – euro weakened to 128.95 and 1.1557 respectively.
Meanwhile, the US Dollar Index rose to 94.54 on slacker euro. Still, the American currency also dipped against the yen reaching 1.3161. At the same time, demand for the greenback stays healthy on a good economic situation in the country and perspectives of further interest rate revision. As a result, the sterling lost grounds against the US dollar, with the rate falling to some 1.3158.
As for the euro, the currency became depressed once the head of Germany's Ministry of Internal Affairs resigned citing migration policy disagreements with Angela Merkel. Another pressure on the euro came from tougher relations between Washington and its trade partners, especially after Donald Trump stated that the EU is practically similar to China in terms of trading with the USA.
This message only bolstered the probability of extra import duties on EU products. Vehicles will probably be a new subject to import restrictions.
The EU said that it was ready to set import duties on the US products worth $300 billion in case of duties on European cars.