ING: Market underestimates US reciprocal tariffs, euro expected to depreciate to 1.05 by the end of Q2.

On March 26, ING analyst Chris Turner pointed out in a report that the market underestimated the risk to the euro brought by the reciprocal tariffs that the United States will take effect on April 2. "The European Union (led by Germany) has a large trade surplus with the United States, which is likely to be the primary target of the US government in adjusting its global trade policy." ING expects the euro to fall to 1.05 against the dollar by the end of the second quarter due to tariffs imposed by the United States.

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