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Germany's central bank chief calls for a stronger global euro amid U.S. policy uncertainty and weakening eurozone growth signals.
Germany’s central bank chief Joachim Nagel urged the euro to play a larger global role as a safe-haven currency amid concerns over U.S. policy instability, emphasizing the need for EU fiscal discipline, stronger integration, and better capital markets.
While the euro rose to yearly highs against the dollar, driven by Fed rate cuts and a weaker dollar, recent data showed weakening German business sentiment, with the IFO index dropping to 87.7, below forecasts, and French PMI falling to a five-month low.
Despite these economic headwinds, the euro held support near 1.1700, with markets watching upcoming data and central bank speeches.
EUR/JPY rose above 174.00, supported by a persistently weak yen, while EUR/GBP dipped to 0.8730 on weak German and UK PMI readings, though the broader trend remains positive.
El jefe del banco central de Alemania pide un euro global más fuerte en medio de la incertidumbre de la política estadounidense y el debilitamiento de las señales de crecimiento de la eurozona.