Jan 12 (Reuters) – European Central Bank chief Christine Lagarde says the re-election of Donald Trump as U.S. president would represent a “threat” to Europe. It could also threaten the tranquillity of EUR/USD.
The EUR/USD traded range last year was nearly six cents below its approximate 14 cent annual average over the past 10 years, and almost 10 cents below its approximate 18 cent annual average since the euro was born in 1999.
EUR/USD most recently traded in a range higher than its 25-year average in 2022 – when Russia’s invasion of Ukraine spurred demand for the safe-haven dollar.
To support her Thursday view of Trump as a threat to Europe, Lagarde said “you just have to look at the trade tariffs, you just have to look at his commitment regarding NATO” during Trump’s 2017-2020 presidency.
Trump‘s quest to win the Republican Party’s presidential nomination for the third time begins in Iowa next week.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
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