The US Dollar (USD) gapped lower at the weekly opening amid optimism fueling demand for high-yielding assets, following news that the United States (US) and the European Union (EU) reached a trade deal.
The US and the EU agreed a 15% tariff on most European goods entering the US, much higher than the average 4.8% exporters face these days. No rates will apply to EU exports in important sectors, including aircraft parts, some chemicals, semiconductor equipment and some agricultural products.
The EU response to the headline was uneven. European Central Bank (ECB) policymaker Peter Kazimir said on Monday that the trade deal reduces uncertainty, but it is unclear for now how it impacts inflation. However, the French prime minister, François Bayrou, said the EU has capitulated to Donald Trump’s threats, adding it is a “dark day” for the EU. The trade focus now shifts to the US-China as officials from both countries resume talks in Stockholm.
The EUR/USD pair peaked at 1.1771 during Asian trading hours, but changed course early in Europe, with the USD surging across the FX board, resulting in the pair shedding over 100 pips.
The macroeconomic calendar had nothing relevant to offer at the beginning of the week, but will be flooded with first-tier releases, including US employment-related data ahead of the Nonfarm Payrolls report on Friday, the preliminary estimates of the Q2 Gross Domestic Product (GDP) for the US and the EU, and inflation updates. On top of that, the Federal Reserve (Fed) will announce its decision on monetary policy on Wednesday.
RESISTANCE 1.16050
RESISTANCE 1.16243
RESISTANCE 1.16451
SUPPORT 1.15856
SUPPORT 1.15711
The US and the EU agreed a 15% tariff on most European goods entering the US, much higher than the average 4.8% exporters face these days. No rates will apply to EU exports in important sectors, including aircraft parts, some chemicals, semiconductor equipment and some agricultural products.
The EU response to the headline was uneven. European Central Bank (ECB) policymaker Peter Kazimir said on Monday that the trade deal reduces uncertainty, but it is unclear for now how it impacts inflation. However, the French prime minister, François Bayrou, said the EU has capitulated to Donald Trump’s threats, adding it is a “dark day” for the EU. The trade focus now shifts to the US-China as officials from both countries resume talks in Stockholm.
The EUR/USD pair peaked at 1.1771 during Asian trading hours, but changed course early in Europe, with the USD surging across the FX board, resulting in the pair shedding over 100 pips.
The macroeconomic calendar had nothing relevant to offer at the beginning of the week, but will be flooded with first-tier releases, including US employment-related data ahead of the Nonfarm Payrolls report on Friday, the preliminary estimates of the Q2 Gross Domestic Product (GDP) for the US and the EU, and inflation updates. On top of that, the Federal Reserve (Fed) will announce its decision on monetary policy on Wednesday.
RESISTANCE 1.16050
RESISTANCE 1.16243
RESISTANCE 1.16451
SUPPORT 1.15856
SUPPORT 1.15711
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My Channel link
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Check my performance
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My Channel link
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Check my performance
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.