Euro Rises to Best Week Since 2009

Last week marked the strongest weekly performance for the euro in 16 years. The currency climbed 4.5 percent over the United States dollar in just one week.

Investment banks are giving up previous forecasts that the euro would fall to equal the dollar.

EU defense: One major reason for the rise was European defense agreements.

Last week, the European Union announced an €800 billion (us$871 billion) defense investment plan to militarize. Germany’s soon-to-be chancellor, Friedrich Merz, also announced a deal that will allow the country to max out its credit card on military spending.

Weakening dollar: U.S. President Donald Trump’s aggressive trade policies, including tariffs on imports from Canada and Mexico, have caused concern over the stability of the U.S. economy.

The dollar also fell slightly because of the monthly U.S. jobs report on March 7, which showed the economy added 151,000 roles in February, less than the 160,000 expected by economists.

Meanwhile, the prospect of European unification as the Continent prepares to support Ukraine has caused investors to be confident in an economic recovery in the eurozone.

Trump has effectively pushed toward European cooperation, which none of us had on our bingo cards. It’s a game changer for interest rates going forward …. [T]he [European Central Bank] might need to cut less.
—Adam Pickett, head of global macro strategy at Citigroup

U.S. collapse: The Trumpet has long watched the devaluation of the U.S. dollar alongside the rise of Europe. Late educator Herbert W. Armstrong warned for decades that a massive financial crisis would hit America and spark the rise of a unified Europe.

Learn more: Read “Our Financial 9/11 Was Prophesied!” in our free booklet He Was Right.