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The single currency will regain back its strength. This was after German Chancellor Angela Merkel refused to sign a letter addressed to the EU Commissioner-designate for the European Green Deal Frans Timmermans. The letter was made by eight (8) EU countries seeking to raise the bloc’s commitment to reducing the bloc’s emission from 40% to 55%. This is expected to hurt the German economy with its large car manufacturing sector. This comes at a time when the largest economy in the European Union is experiencing economic turmoil amid a slowdown in the European region. Along with the countries refusing to commit with the emission target where the eastern and nationalist group inside the European Union, the Visegrad. Angela Merkel is a de facto leader of the European Union, along with French President Emmanuel Macron. Her move refuse signing the letter shows her massive influence in the European politics.
Hungary just lose a key American ally with the departure of Kurt Volker. U.S. President Donald Trump’s special envoy to Ukraine is at the center of the current impeachment campaign against U.S. President Donald Trump. In September 24, Speaker of the House, Nancy Pelosi, announced a formal impeachment inquiry to President Trump. This was following the acknowledgement of Trump that he discussed Joe Biden in a July call with Ukrainian President Volodymyr Zelensky. This was amid the looming 2020 U.S. Presidential Election wherein Trump will seek his reelection for the second term. Joe Biden is a leading Democrat contender and a former Vice President of the United States under Barack Obama. The inquiry puts America in a political and economic uncertainty. The U.S. Dollar is expected to drop against a basket of major currencies as the investigation further drag President Trump into his impeachment.
The U.S. Dollar will further be drag by the recent attempts of the Trump Administration to pressure the U.S. Congress. This was amid the looming U.S. 2020 Presidential Election wherein U.S. President Donald Trump is seeking a reelection bid. However, most of the key policies he promised during the 2016 campaign is yet to materialize. During Vice President Mike Pence’s visit to Arizona, he called for Arizonian to help the administration to pressure the U.S. Congress to pass the ratified version of the NAFTA. The North American Free Trade Agreement, also known as the USMCA (United States-Mexico-Canada), is a key trade agreement between neighboring countries of America, Mexico, and Canada. Mexico has recently become the largest U.S. trading partner and President Trump is not happy about it. He later imposed 5% tariff on all Mexican exports to the country. The USMCA is seen to benefit the United States.
The U.S. Dollar is expected to be hurt by the recent announcement of the Norwegian government. The country said it does not plan to block Chinese telecom giant Huawei despite warnings of China’s cyber espionage activity. Norway is planning to tap five (5) companies to build its fifth generation (5G) network, which includes Huawei. This decision by Norway puts the country at odds with the United States. Earlier this year, President Trump pressured the country’s allies to ban the company. This led to Canada’s arrest of Huawei’s Chief Finance Officer and heiress. However, the United Kingdom and New Zealand turned away from the U.S. New Zealand Prime Minister Jacinda Ardern even said that the country’s decision will not be influenced by the United States. Norway’s state-controlled Telenor plans to pick 5G technology suppliers this year to prepare for commercial rollout in 2020.