Market Analysis: The impact of tariffs on the United States may be greater than that on the Eurozone, thereby boosting the Euro.

On April 7, UBS Global Wealth Management analysts said in a report that the euro against the US dollar EUR/USD should recover further from an undervalued position, as the damage to the U.S. economy from U.S. tariffs may be more serious than that of the euro area. While tariffs could have a negative impact on the eurozone economy in the short term, the ECB's previous rate cuts, Germany's expected fiscal stimulus and the EU's increased defense spending should boost growth in the coming years, they said. "We expect the U.S. economy to be hit the hardest by the new tariffs, and from now on, the Fed will outpace the ECB." UBS raised its forecasts for Europe and the United States in September 2025 and March 2026 to 1.12 and 1.14, respectively.