Is the Trump Effect Impacting the EURUSD and the DAX?

IThe Trump Effect:  How does it impact trading in the EURUSD and the DAX?

Here is a question? Why has the EURUSD recovered and DAX at record levels given the risk of Trump tariffs. prospect of lower interest rates, an underperforming German economy and political uncertainty in Germany (and France)?

GER30 DAILY CHART

EURUSD DAILY CHART (1.0177  => 1.0521)

Many traders, especially retail, rely purely on charts and technical analysis to make their trading decisions.

I, peronally, view trading as a puzzle and feel most comfortable when I find the pieces that fit. In this way I look to be in sync with what is driving the trends, especially longer-term, so I know how to react to news and events. I then use my charts (especially with my Amazing Trader charting algo) to confirm (or contradict) what my puzzle is showing.

So I asked myself why are stocks soaring and the currency rebounding if the Eurozone economy, especially Germany, is in bad shape? It was a missing piece to my puzzle.

I thought about what variable might be missing in my analysis. Maybe it is the election and what I referred to as the Trump Effect.Era.

In this regard, while l the focus has been  on the threat of tariffs, there is something else on the horizon to consider, a greater chance of an Trump Effect end to the Russia-Ukraine war

While this is just my search for a puzzle piece, it may explain why some longer term players may be looking ahead.

In any case, it is something to keep in mind if current trends continue in the face of what would be considered headwinds.

Otherwise it is something to keep in mind as geopolitical events unfold in the new Trump era.

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