The Euro dropped below $1.06, the lowest since October 2023, pressured by a strong dollar following Donald Trump's US election victory. Investors are worried about potential trade tariffs Trump suggested, which could hurt European exports.

Reports about Trump's possible administration picks added to fears of policies that might impact Europe's economy. The Euro is also under pressure due to political uncertainty in Germany, set to hold snap elections on Feb. 23 after the collapse of Chancellor Olaf Scholz's governing coalition.

Meanwhile, markets adjusted their expectations for European Central Bank rate cuts, now forecasting a 25 bps cut in December with reduced odds of a larger move. On the data front, the ZEW Indicator of Economic Sentiment for Germany fell much more than expected to 7.4 in November from 13.1 in October and forecasts of 13.

Source : Trading Economics