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ING: The euro has lost its status as an alternative to the dollar.
Golden Ten Data on April 29, ING analyst Francisco Pesole said in a report that investors were worried about US President Trump's trade policy and abandoned the dollar, but now the momentum of the euro as a preferred (alternative) currency has weakened. Most G10 currencies have outperformed the euro this week. Massive blackouts in Spain and Portugal could hit the euro further, although there are other factors. The options market shows that the euro is the most heavily overbought, and speculators could lift bets on the euro's strength if the eurozone's economic growth data for the first quarter is released on Wednesday is weaker than expected. Recent concerns about possible weakness in the U.S. economy and optimism about fiscal stimulus in Germany may have distracted the market from concerns about a weak eurozone economy, Pesole said.