While much of the euro's rally stems from a flight from the dollar due to US President Donald Trump's protectionist trade policies-- including steep tariffs of 145% on China-- part of the single currency's strength reflects growing confidence in the eurozone economy.

Worries about economic growth fueled by U.S. President Donald Trump's tariff onslaught will likely push the European Central Bank to cut interest rates on Thursday for a seventh straight time, a move that should make credit more affordable for business and consumers and promote economic activity.

The automotive sector encompasses not only car manufacturers but also, and perhaps primarily, producers of car parts. Until recently, the USA was the only reliable market for European manufacturers, but now uncertainty is the prevailing sentiment.