Late 2024 and early 2025 have been marked by a rally in the exchange rate of the U.S. dollar as traders presumably took President Donald Trump’s projection of strength to indicate the nation’s economic strength.
Among the currencies that fell sharply during the period was the Euro, with the exchange rate falling from between $1.09-$1.12 for €1 in September and October to lows of $1.02 for €1 in early January.
The situation rapidly changed with the start of March as EUR soared from $1.04 to $1.08, with a particularly sharp rise evident on Wednesday.
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Why the Euro is soaring in March
As it turned out, much like Trump’s re-election helped the dollar soar compared to most other currencies, the first month and a half of his presidency provided a strong catalyst for the Euro.
Indeed, with the U.S. appearing increasingly isolationist, belligerent in terms of its trade war against allies and adversaries alike, and unwilling to offer support to nations other than Israel, the EU appears to be shaking off what some economists have labelled an investment phobia.
After nearly two decades of austerity of varying severity – kickstarted by the Great Recession – two major developments have come from the bloc. First, on Tuesday, March 4, the European Commission announced an €800 billion plan to develop the union’s military capabilities.
Only a single day later, Germany unveiled an infrastructure investment plan worth €500 billion, significantly boosting investors’ attitudes toward the economic and diplomatic bloc.
French satellite company takes the spotlight amidst EU investments
The changing situation also led to a rather unusual phenomenon on Wednesday, March 5, as one relatively unknown European company became a stock market sensation.
Indeed, with Starlink increasingly likely to cut its support for the Armed Forces of Ukraine (AFU) as Elon Musk has been pushing on X for a U.S. exit from both NATO and the UN, Eutelsat (ETR: ETL) – a competitor in the satellite internet sector – recorded a massive rally that led to it being 416.20% in the green in the weekly chart.
Much like EUR’s soaring, the French company’s rally can be linked to the anticipated support from the European Union in its plans to support AFU upon Starlink’s exit.
Featured image via Shutterstock
