EUR/USD is trading at 1.07796, 0.19% down since previous day close. The US economy’s resilience is weaker than Germany’s, and the vulnerability of the EUR next year depends on the ECB’s dovishness. Germany’s government expects economic activity to contract by -0.2% this year, making it the weakest economy in the G7 for the second consecutive year. The IMF points to manufacturing weakness, weak China, energy transition impacts, and an ageing demographic. Parity is within the realm of possibilities.

GER30 index is trading near 19529, 0.42% down since previous day close. According to ING strategists, car sales will slow down in the second half of the year, and European automakers are probably going to be more cautious. This year is a transition year, with the electrification boom slowing down somewhat before picking up speed again. In 2025, rate decreases would provide some respite, though, since lower interest rates in the US and Europe would boost consumer confidence.

GOLD is trading at 2750, 0.4% up since previous day close. Gold reached record highs during the European session, driven by risk-off mood, Middle East tensions, and US political uncertainty. The US Dollar rally has reached its highest level since early August, undermining gold price demand. US Treasury bond yields reached their highest level in three months, driven by Federal Reserve bets and deficit-spending concerns. A break below the $2,725 area could prompt technical selling and drag the price to the $2,700 mark.