Is the early optimism starting to wear off? There's certainly signs to support that argument. The US and EU might have agreed to avoid a worst case scenario for both sides but this deal is still not one that will bring too much relief for the European economy. The EU basically conceded and agreed to a new baseline tariffs of 15%. That seems alright on paper until it is not.
Last week, we already saw Volkswagen report dismal Q2 earnings and lowered its full-year outlook citing the pain from Trump's tariffs. Having to still deal with 15% tariffs now while better, isn't going to change the outlook materially. German stocks have also eased up on gains today and are now up just 0.4%. The DAX was up 1% at the open earlier just an hour ago.
Meanwhile, EUR/USD has also turned to 1.1680 after having opened with a slight gap up earlier in the day.
The drop sees the pair now fall back below both its 100 and 200-hour moving averages, reaffirming a more bearish near-term bias again.
This comes alongside a broader bid in the dollar with USD/JPY up 0.4% to 148.23 and AUD/USD down 0.7% to 0.6520 currently.
If anything, it looks like the TACO script has flipped a little. From Trump chickening out, we're starting to see other countries being the ones to do so now ahead of the 1 August deadline. The deals are still not exactly what Trump might play them out to be but it is clear that the pressure is starting to get to the other countries.
This article was written by Justin Low at investinglive.com.Hence then, the article about euro turns lower as traders digest us eu trade deal was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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