{"id":94327,"date":"2025-04-15T06:00:21","date_gmt":"2025-04-15T14:00:21","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=94327"},"modified":"2025-04-15T05:55:58","modified_gmt":"2025-04-15T13:55:58","slug":"euro-emerging-as-safe-haven-amid-donald-trump-tariff-moves","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/euro-emerging-as-safe-haven-amid-donald-trump-tariff-moves\/","title":{"rendered":"Euro emerging as safe haven amid Donald Trump tariff moves"},"content":{"rendered":"

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\n(Pixabay photo)<\/em><\/p>\n

COGwriter<\/a><\/p>\n

The US dollar has dropped compared to the EU’s euro and the value of gold. Here is a report related to the euro:<\/p>\n

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Euro emerges as safe haven amid Trump tariff turmoil<\/h2>\n

15 April 2025<\/p>\n

Investors are shifting away from the US dollar in response to Trump\u2019s aggressive tariff policies and new confidence in the eurozone. Could this be the single currency’s moment to shine? …<\/p>\n

The euro<\/a> has surged over 10% against the US dollar since January …<\/p>\n

While much of the euro’s rally stems from a flight from the dollar due to US President Donald Trump’s<\/a> protectionist trade policies \u2014 including steep tariffs of 145%<\/a> on\u00a0China<\/a> \u2014 part of the single currency’s\u00a0strength reflects growing\u00a0confidence in the eurozone economy.<\/p>\n

The 20-member eurozone<\/a> is rebounding from a mild\u00a0recession in 2023, with growth of 0.8% last year\u00a0and a projected 1.3% expansion in 2025. However, looming 20% US\u00a0tariffs on imports from the European Union<\/a>\u00a0\u2014 currently paused for 90 days \u2014 could still derail this outlook.<\/p>\n

Anticipating a European recovery amid US economic uncertainty, many foreign investors are shifting capital from the dollar into European stocks and bonds, further bolstering the euro’s value. …\u00a0major currency swings of 10% in mere months are relatively rare\u00a0and the euro is increasingly being seen as a counterweight to the dollar during these turbulent geopolitical times, as fears grow\u00a0that Trump\u2019s tariffs<\/a>\u00a0could tip the US economy<\/a> into recession.<\/p>\n

“Trump is undermining trust in the rationality of US policymaking, the long-term outlook for US growth and the sustainability of its public finances,” Holger Schmieding, chief economist at Berenberg Bank, told DW. “As a result, the dollar is losing some of its value, but the euro is no real alternative.”<\/p>\n

Schmieding cited\u00a0the damage Trump\u2019s trade agenda\u00a0could do to the\u00a0global economy, which he said “could weigh on eurozone growth\u00a0<\/span>and require the ECB to respond with more rate cuts.”<\/span><\/p>\n

Oxford Economics estimates that if Trump proceeds with 20% tariffs on EU exports, eurozone growth could decline\u00a0by up to 0.3 percentage points this year and next.\u00a0The projection assumes Brussels would respond with targeted countermeasures<\/a> on US goods rather than full-scale retaliation. https:\/\/www.dw.com\/en\/euro-emerges-as-safe-haven-amid-trump-tariff-turmoil\/a-72216210<\/a><\/p>\n

Dollar Hits 3-Year Low Against the Euro in Tariff Turmoil<\/h2>\n

April 11, 2025<\/p>\n

The dollar continued its fall against major currencies …<\/p>\n

Why The Dollar Is Weakening<\/h3>\n

\u201cThe main catalyst is an apparent repatriation trade from European investors, who are selling USD denominated assets and repatriating capital to the eurozone,\u201d says Peter Kinsella, global head of forex strategy at Union Bancaire Priv\u00e9e (UBP). \u2026<\/p>\n

According to ING forex strategists, \u201cThe euro remains a key recipient of dollar outflows\u201d and the massive EUR-USD rally is \u201calmost entirely a function of the loss of confidence in the dollar, and not at all justified by underlying short-term rate dynamics.\u201d https:\/\/www.morningstar.com\/markets\/dollar-hits-3-year-low-against-euro-tariff-turmoil<\/a><\/p>\n

Safe-haven gold surpassed the key $3,200 mark for the first time on Friday, spurred by a weaker dollar and economic concerns due to an intensifying trade war. …<\/p>\n

\u201cRecession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken \u2013 all factors reinforcing gold\u2019s role as a crisis hedge and inflation shield,\u201d said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. https:\/\/www.cnbc.com\/2025\/04\/11\/gold-bolts-past-3200-on-dollar-slide-safe-haven-flows.html<\/a><\/p><\/blockquote>\n

The Europeans have long wanted the euro to push the US dollar\u2019s reserve currency status aside and the BRICS+ alliance wants to try to stop using the US dollar for cross-border trade. Overall the European and BRICS+ nations have also been accumulating gold.<\/p>\n

Will the Euro surpass the US dollar as the world’s primary reserve currency?<\/p>\n

Some suspect it might:<\/p>\n

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Euro Challenges USDollar As Global Currency<\/h2>\n

January 15, 2022<\/p>\n

Statista’s Katharina Buchholz notes that <\/a>there are other indicators that already show the Eurozone\u2019s growing economic prowess and international importance<\/strong>. The value of global payment transactions in Euro has been inching up to that of the U.S. dollar,\u00a0data from the Swift international payment network shows,<\/a> hinting at increased activity around the currency. … Faith in the U.S. economy and its growth is meanwhile shaky<\/strong>,\u00a0according to CNBC<\/a>, as uncertainty around President Joe Biden\u2019s \u201cBuilt Back Better\u201d economic package continues.\u00a0 https:\/\/www.zerohedge.com\/geopolitical\/euro-challenges-usdollar-global-currency<\/a><\/p><\/blockquote>\n

Proportionally, the world still primarily uses the US dollar as its primary reserve currency.<\/p>\n

But, because of US sanctions and tariffs, increasing US debt and money supply increases, and the general strength of the European economy, more are looking towards the Euro as the US dollar replacement.<\/p>\n

Notice something from my latest book available at Amazon Kindle: Unintended Consequences and Donald Trump\u2019s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?<\/a>\u00a0as well as Amazon print\u00a0Unintended Consequences and Donald Trump\u2019s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?<\/a><\/span><\/span>:<\/p>\n

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The USA dollar will ultimately crash and be worthless. That \u201cpride\u201d of American power will be broken (cf. Leviticus 26:19). (p. 24)<\/p>\n

European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the USA dollar from its current position as a reserve currency. (p. 39)<\/p>\n

When the U.S. dollar is no longer the world\u2019s reserve currency, this will hurt the USA financially. Increasing debt, including \u201cquantitative easing,\u201d is a form of dishonest profits that is not something that God approves of and will punish the USA for (cf. Ezekiel 22:13-16).<\/p>\n

Inflation will eventually hit the USA extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the USA. Eventually, but not yet, the USA dollar will become worthless.<\/p>\n

Will it always be straight downhill for the economy of the USA?<\/p>\n

No.<\/p>\n

There are some reasons to have some temporary optimism. Proposed reductions in government regulations are expected to boost the economy. In addition, technological and other developments may temporarily support the U.S. economy\u2014as can reductions of regulatory burdens. (p. 41)<\/p><\/blockquote>\n

Since many are now questioning the role of the USA\u00a0dollar as the world\u2019s reserve currency, more are looking into other currencies as well as gold.<\/p>\n

Gold will set records in U.S. dollar terms. …<\/em><\/p>\n

When the U.S.\u00a0dollar totally collapses people all around the world will consider that even if the euro (or something similar)\u00a0is strong, having a more gold-backed currency would be safer.<\/p>\n

The collapse of the USA dollar will shake a lot of the world\u2019s confidence in non-gold backed currencies. The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the USA dollar or various other currencies.<\/p>\n

Having the European power acquiring more gold to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.\u00a0 (pp. 205-207)<\/p>\n

The USA and its dollar are at serious risk. \u2026<\/p>\n

Unintended Consequences<\/strong><\/p>\n

While Donald Trump seems to believe that his policies are best for the United States, notice some unintended consequences of them: \u2026<\/p>\n