Euro gains ground against the dollar following financial turmoil and Trump's suspension of tariffs

The euro recently became the surprise winner of the financial turmoil caused by Donald Trump's trade tariffs, appreciating by more than 5% against the dollar. This rise is the result of investors repatriating capital and selling their US assets. Trump's decision to suspend tariffs has also caused the euro to rise significantly. However, the appreciation of the euro may hurt European exporters and creates risks for European equities, as a strong euro is usually not favorable in times of global economic slowdown.