U.S. stocks are being trounced by Europe as Trump retreats from Ukraine
Zelensky Moment: President Trump criticized Ukrainian President Zelensky during a tense Oval Office meeting, warning him about the risks of "World War III" due to failed negotiations over mineral rights.
Market Reaction: Following this incident, European defense stocks experienced a significant surge in value on the first trading day after the meeting.
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Analyst Views on EURUSD

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U.S. Dollar Performance: The U.S. dollar has struggled throughout 2025 but may see improvement in early 2026.
Technical Indicator: The ICE U.S. Dollar Index recently experienced a "golden cross," where the 50-day moving average surpassed the 200-day moving average, signaling potential bullish trends.
Expert Insight: Paul Ciana, a technical strategist at BofA Global Research, highlighted the significance of this technical signal for the dollar's future performance.
Market Implications: The "golden cross" is often interpreted as a positive indicator for traders, suggesting a possible recovery for the dollar against other currencies.

Potential Investor Surprises: Morgan Stanley's global strategy team, led by Matthew Hornbach, has identified potential surprises that could catch investors off guard in 2026.
Research Note Publication: The findings were shared in a research note published on Friday, highlighting developments not currently factored into consensus thinking.
AI Trade Impact: The surge in artificial intelligence trading is leading to a weakening of currencies in Asia as locals exchange their money for dollars to invest in AI stocks.
Expert Analysis: Rory Green from TSLombard provided insights on this phenomenon in a report shared with MarketWatch.

- Dollar's Performance: The U.S. dollar experienced its worst first-half performance in a calendar year since the early 1970s at the start of 2025.
- Interest Rate Cuts: The dollar has been rising steadily since the Federal Reserve began cutting interest rates again in September.

Stablecoin Growth: The value of stablecoins has surpassed $300 billion, accounting for approximately 7% of the total cryptocurrency market, following the passage of the GENIUS Act by Congress last July.
Questionable Stability: Despite being marketed as a safer cryptocurrency option, the stability of stablecoins is often overstated, with significant variations in safety and security depending on the issuer.

Investor Sentiment: Investors are encouraged to overcome concerns regarding U.S. equities, largely due to the resilience of the U.S. consumer, according to a European wealth manager.
AI Valuation Concerns: While rising valuations of AI-related companies are a concern, they are not currently hindering investment in AI stocks, as stated by Benedicte Kukla, chief strategist at Indosuez Wealth Management.






