Slovenia, Slovakia, and Hungary stand out as the Central and Eastern European (CEE) countries most involved in trade with the United States, each showing significant reliance on specific sectors. Slovenia's trade with the US is heavily concentrated in pharmaceuticals, accounting for more than 70% of its total exports to the country. Meanwhile, Slovakia's exports to the US are dominated by vehicles, comprising nearly 80% of its total exports. These nations are among the most exposed in the region to US trade, with at least 5% of their GDP reliant on these exchanges.
The Czech Republic is taking a cautious approach to potential investments in Bitcoin. The Czech central bank is conducting a comprehensive study on the cryptocurrency before deciding on any investment steps. This move comes amid fluctuations in foreign exchange markets, with EURCZK moving to 25.12, EURHUF at 402, and EURPLN decreasing to 4.17. These shifts are attributed to global influences such as tariff announcements and recent comments from US President Donald Trump regarding Ukraine and President Zelensky.
In Hungary, vehicles constitute a significant portion of the export market to the US, holding roughly a 20% share. This trend aligns with similar patterns in Croatia, where vehicles also lead in total US imports. Meanwhile, the broader underperformance of the US Dollar has been supportive of the EUR/USD pair's strength. As investors turn their attention to upcoming US jobs data and statements from Federal Reserve officials, varying dynamics continue to unfold across the US, eurozone, and UK markets.
Since the beginning of the week, CEE currencies have shown a weakening trend against the euro. This development coincides with gold prices reaching a new all-time high during the early European session on Thursday. The surge in gold prices reflects a breakout from a short-term trading range, driven by President Trump's fresh threats to impose tariffs on imported goods. These threats have dampened investors' appetite for riskier assets, thereby underpinning demand for safe-haven assets like gold.
In the United States, repo rates have become more attractive, and bills are expected to appreciate, further influencing market trends. These financial dynamics highlight the complex interplay of factors affecting global trade and currency markets.