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European companies sound the alarm compared to the Euro Fort, while the rise of the single currency against the dollar this year opens a new threat to the exporters already faced with the prices of American President Donald Trump.
The German software group SAP, the automaker Porsche, the brewer Heineken and the French industrial giant Schneider Electric are among the companies to warn investors of a potential blow after the euro climbed more than 9% to a three -year summit.
The Euro rally, which places it on the happy new year against the dollar since 2017, undermines the competitiveness of European exporters to the United States, where there are already signs that consumers reintegrate expenses due to the uncertainty created by Trump's trade war.
The United States has imposed so-called reciprocal prices in the EU by 20% in early April, but then reduced them to 10% to allow 90 days of talks between the two parties.
“The strong euro exacerbates the pricing shock,” said Robin Winkler, chief economist of Germany at the Deutsche Bank, adding that he “harmed competitiveness (of companies) in the foreign trade”.
HSBC analysts have reduced their for -profit growth forecasts last week for companies in the FTSE Europe index to 2.9%, warning that the highest euro could “affect” their revenues abroad.
Although many companies use monetary hedges to protect themselves from foreign exchange rates oscillations, many have told investors that an extended rally in the euro would reduce profits and income. Euro gains could increase the demand as goods become more expensive for American buyers, or the average profits translated into interior currencies are reduced.
SAP financial director, Dominik Asam, said that each $ 0.01 strengthening at the Euro-Dollar rate shaved 30 million euros from his annual income.
He added that if SAP had covered an important part of his exposure to currencies this year, “2026 is more difficult because we would really suffer from the drop in the exchange rate” once the hedges expire.
Heineken said that the sharp increase in the euro against a range of currencies, including the Mexican peso, could withdraw 180 million euros from its net profit adjusted in full year.
Schneider Electric's financial director Hilary Maxson warned that the lower dollar, alongside other currency effects, amazed up to 1.25 billion euros.
Porsche had sought to minimize the effect of the strongest euro, said financial director Jochen Breckner, but he said that the group, who has North America as a second market, would feel a “certain effect”.
Germany HelloFresh, a supplier of meal kits, warned that it had based its prospects for the year on a euro-dollar rate of $ 1.04, and a rate of $ 1.14 would reach an adjusted operating profit of 28 million euros.
The resurgence of the Euro marks a striking reversal of the last quarter of last year, when the dollar organized a rally of blisters on the expectations that the economic agenda of Trump stimulates American growth and would harm American trade partners.
Instead, the indications that Trump's aggressive trade war has a scary effect on the US economy struck the dollar and left the S&P 500 to train European actions this year.
In a sign of twin concern of investors concerning euros and prices, the actions of European exporters have underperformed the broader European market. A basket of actions, including Stellantis, SAP and Daimler Truck, underperform as the euro has climbed, according to Barclays.
Trevor Greetham, multi-active chief investing in Royal London Asset Management, said that a combination of the force of money and that Trump's homework had pushed him to reduce exposure to European actions.
Several large banks expect the euro to strengthen more after reaching a summit of more than three years of $ 1,157 in April.
Athanasios Vamvakidis, a global GP10 bank strategy manager, said the currency was also stimulated by the 2 TN recovery package from the German government.
“The market was too optimistic in the United States and too pessimistic about Europe,” said Vamvakidis, who predicts that the euro will reach $ 1.17 by the end of the year.
Additional report by Patricia Nilsson, Emily Herbert and Ian Johnston
