# For Europe's markets, Trump's return spells euro pain but bond gains | Reuters

> The euro dropped about 2% against the dollar, heading for its biggest daily fall since the 2020 COVID crisis, while European bonds gained. JPMorgan, ING and ABN AMRO said parity could return under Trump depending on tariff levels and tax cuts.

- Date: 2024-11-06 · published 2024-11-06T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/5808-for-europe-s-markets-trump-s-return-spells-euro-pain-but-bond-gains-reuters
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Euro weakness after the election reflects expectations of a stronger dollar and tighter Fed policy, which tends to pressure dollar-priced feed commodities and raise euro-zone import costs.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2024-11-06 | 1 | -1.7% | -5.8 | Reports the euro falling about 2% on Trump's win, with tariff exposure and rate expectations as drivers, confirming the move's size and cause. |
| EURUSD | 2024-11-13 | 5 | -3.2% | -4.2 | The euro fell about 2% in a day on the Trump win, with bonds rallying on tariff-driven growth fears, which confirms the shock to the euro. |
| DXY | 2024-11-06 | 1 | +0.9% | 3.6 | Euro fell about 2% against the dollar on the election, a major component of the broad dollar move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-12-04 | [Euro to stay weak, but avoid parity to USD for now: Reuters poll](https://feedsoft.ai/events/27174-euro-to-stay-weak-but-avoid-parity-to-usd-for-now-reuters-poll.md) | -0.1% | -2.4% |
| EURUSD | 2021-02-26 | [Stock markets roiled by global bond whiplash \| Reuters](https://feedsoft.ai/events/9588-stock-markets-roiled-by-global-bond-whiplash-reuters.md) | -1.5% | -3.7% |
| EURUSD | 2023-03-26 | [Banking stress puts U.S. and Europe on watch for credit crunch \| Reuters](https://feedsoft.ai/events/37074-banking-stress-puts-u-s-and-europe-on-watch-for-credit-crunch-reuters.md) | +1.0% | +2.0% |
| EURUSD | 2021-02-26 | [EXCLUSIVE ECB's Stournaras calls for increasing bond buying to calm markets](https://feedsoft.ai/events/9589-exclusive-ecb-s-stournaras-calls-for-increasing-bond-buying-to-calm-markets.md) | -1.5% | -3.7% |
| EURUSD | 2020-08-21 | [Euro sinks, yuan rallies in Europe - Markets - Business Recorder](https://feedsoft.ai/events/51830-euro-sinks-yuan-rallies-in-europe-markets-business-recorder.md) | -0.3% | -0.0% |
| DXY | 2021-02-26 | [GLOBAL MARKETS-Stocks try to recover from bond whiplash, dollar gains By Reuters](https://feedsoft.ai/events/10601-global-markets-stocks-try-to-recover-from-bond-whiplash-dollar-gains-by-reuters.md) | +0.7% | +1.9% |
| DXY | 2024-11-07 | [Trump's win emboldens dollar bulls as they brace for tariffs \| Reuters](https://feedsoft.ai/events/9518-trump-s-win-emboldens-dollar-bulls-as-they-brace-for-tariffs-reuters.md) | +1.0% | +0.8% |
| DXY | 2021-02-26 | [Stock markets roiled by global bond whiplash \| Reuters](https://feedsoft.ai/events/9588-stock-markets-roiled-by-global-bond-whiplash-reuters.md) | +0.7% | +1.9% |

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/europes-markets-trumps-return-spells-euro-pain-bond-gains-2024-11-06/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.