NATO: Rutte Endorses Trump Criticism Of Euro Defence Spending Amid NATO Rupture

Apr-09 15:25

Speaking amid a major rift between US President Donald Trump and European NATO members, NATO Secretary General Mark Rutte says at an event hosted by the Reagan Institute that the US must play a "powerful and active role" in world affairs if "peace is going to have a chance." LIVESTREAM 

  • Rutte adds, "American leadership is absolutely essential if freedom is to be the rule and not the exception." In a nod to Trump's concerns over 'burden sharing' within the alliance, Rutte suggests that Western European countries have taken US leadership "for granted."
  • Rutte says that in the post-Cold War period, European states have shifted away from investment in defence to an "unhealthy codependency" with the US. He says Western European militaries have shrunk and defence budgets "shrivelled."
  • Rutte: "President Trump's commitment to progress refers more than a generation of stagnation and atrophy, reminding Europe that values must be backed by hard power. Hard power provided not only by the US, but through the collective effort of [NATO countries]."
  • Rutte applauds Trump's hardline position at the NATO summit in The Hague last summer, "to invest 5% of GDP in defence." Rutte also agrees with US Secretary of State Marco Rubio's statement that NATO is "not a one-way street."  

Historical bullets

BOBL: Swap related trade

Mar-10 15:24

Bobl Swap related trade, suggest Receiver:

  • OEM6 2.67k at 116.69.

SCHATZ: Block trade

Mar-10 15:20

Schatz Block trade, suggest buyer:

  • DUM6 ~4.11k at 106.50.

CHF: EURCHF Consolidates Back Above 0.90, Bearish Trend Intact

Mar-10 15:10
  • After printing a fresh cycle/decade low of 0.8981 on Monday, EURCHF has since stabilised back above the 0.90 mark today, consolidating around 0.9030 across early US trade. EURCHF price action has continued to reflect the Swiss Franc’s relative insulation to the dynamics around central bank re-pricing sensitivity to rising energy costs.
  • The pair has seen a consistent decline from mid-January, slipping from 0.9300 to current spot levels, with the 20-day EMA continuing to cap corrective bounces. This was particularly visible last week, when SNB comments on a readiness to intervene prompted a swift short squeeze to 0.9131, perhaps improving short-term positioning somewhat.
  • Renewed downside would target a move to 0.8913, the 1.236 projection of the Mar 14 - Apr 11 - Aug 18 2025 price swing. The 1.382 projection is at 0.8849.
  • Goldman Sachs think short EURCHF is one of the best hedges against inflation risks from a steeper or more prolonged oil price shock. They cite the Franc as being uniquely well-positioned against rising inflation because the SNB is structurally hawkish and targets inflation below 2%, unlike most other G10 central banks.
  • If energy prices and Euro area growth risks remain elevated, GS think EURCHF downside should persist and offers useful inflation protection in this environment, primarily in options formats.