The euro crashed through key support levels Thursday, tumbling 1.8% to $1.0650 – its lowest level since May 2024 – as Trump’s tariffs sparked capital flight from European assets. The currency rout accompanied:
- German 10-year yields falling 12 basis points
- Worst day for European bank stocks in 2025
- $2.9B outflow from European equity funds (early data)
“The euro is becoming the pressure valve for European growth fears,” said a Citigroup FX strategist, predicting parity with the dollar if the trade war escalates further. The ECB faces mounting pressure to intervene.
