Trade tensions between Germany and China pose a potential headwind to the euro, Commerzbank's Volkmar Baur says in a note. The dispute could result in trade restrictions against China given concerns about Germany's growing trade deficit with the country, he says. Any EU measures taken would certainly not go unanswered by China, although it's pointless to speculate on what any response might look like, he says. "However, it is unlikely to be positive for the European economy and would therefore probably weigh on the euro as well." The euro last trades up 0.2% at $1.1452. (renae.dyer@wsj.com)
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Germany-China Trade Tensions Could Weigh on Euro — Market Talk
Trade tensions between Germany and China pose a potential headwind to the euro, Commerzbank's Volkmar Baur says in a note. The dispute could result in trade restrictions against China given concerns about Germany's growing trade deficit with the country, he says. Any EU measures taken would certain…