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Euro Rises on US-EU Trade Pact
Monday, 28 July 2025 07:56 WIB | EUR/USD |EUR/USD

The euro climbed above $1.175 on Monday, snapping a two-day losing streak after the US and EU reached a trade agreement over the weekend. The deal includes a 15% tariff on most European goods, significantly lower than the 30% originally threatened by Washington, easing fears of a broader trade conflict.

Announced jointly by President Trump and European Commission President Ursula von der Leyen in Scotland on Sunday, the agreement was hailed by Trump as "the biggest of all the deals," while von der Leyen said it would provide "stability" and "predictability."

However, key details, such as which industries are covered and the scope of possible exemptions, remain unclear. Last week, the euro rose 1% after the ECB held interest rates steady as policymakers paused to assess geopolitical risks. The ECB has already delivered four rate cuts this year, lowering the deposit rate from a 4% peak in 2024 to 2% as of June.

Source: Trading Economics

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