Euro rises after major EU–US trade deal
Photo: The euro rose against the dollar (Getty Images)
The euro strengthened after news of a framework trade agreement between the US and the European Union. This is one of a series of agreements aimed at preventing a global trade war, according to Reuters.
The euro reached $1.1753, rising 0.1% after an initial increase of 0.3%.
Easing tensions and investor expectations
At a meeting in Scotland, US President Donald Trump and European Commission President Ursula von der Leyen announced that the tariff on imports of goods from the EU would be 15% — half of what was previously planned.
This helped ease concerns about the economic impact of trade tariffs.
"It could be a positive week, just purely from the fact that now we know the rules of the game, if you like," said Rodrigo Catril, senior currency strategist at NAB. In his opinion, global clarity could stimulate investment and economic growth.
However, a detailed trade agreement between the world's largest economies remains elusive. Negotiations between high-level negotiators from the US and China are scheduled to take place in Stockholm on Monday.
China has until August 12 to conclude a stable trade agreement with the US. According to the South China Morning Post, the parties may extend the truce in the tariff war for another three months.
Investment commitments and economic impact
Trump said that the EU plans to invest about $600 billion in the US and significantly increase purchases of American energy and weapons.
This agreement is similar to the agreement with Japan, under which the latter committed to invest about $550 billion and agreed to a 15% tariff on cars and other goods.
