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07.11.202407:02 Forex Analysis & Reviews: Hot Forecast for EUR/USD on November 7, 2024

Donald Trump achieved such a decisive victory that this time, the election avoided the scandals that marred the vote four years ago. Additionally, Republicans secured a majority in the Senate. While vote counting for the House of Representatives continues, they are also clearly leading there. It seems that the Republican Party will gain control of the White House and both chambers of Congress.

This translates to higher tariffs, increased U.S. protectionism, and more aggressive demands for higher defense spending for Europe. Given the fragile state of the eurozone economy, these developments could exacerbate its problems.

Moreover, the situation worsened because of the collapse of the ruling coalition in Germany, prompting Olaf Scholz to discuss early elections. Currently, opposition parties are highly skeptical of the European Union, and NATO may not achieve a majority in the Bundestag, but they are likely to strengthen their positions. The future government will have to take their stance into account.

All these factors contribute to a lack of optimism for the euro, which will likely remain under pressure. For now, political factors are expected to outweigh economic ones.

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Dean Leo,
Analytical expert of InstaSpot
© 2007-2024
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