In addition,
Eu-usa agreement weighs euro:
Around 3 p.m., the European currency digs its losses against the American currency, backing 0.55%, to 1.1524 dollars, and lost 0.24% compared to the pound, at 86.55 pence for one euro. Nevertheless,
The euro weakens on Tuesday. However, investors being worried about the repercussions of the agreement between Brussels and Washington on the European economy, which, on the contrary, benefits the dollar.
“Investors on the foreign exchange market. Moreover, and even several European leaders, seem to agree that these generalized customs rights constitute more a burden than a boon” for the European Union (EU), analysis of Fawad Razaqzada, of City Index.
Around 1:00 p.m. GMT (3:00 p.m. HEC), the euro dug its losses against the American currency, back from 0.55%, to 1.1524 dollars, and lost 0.24% compared to the book, at 86.55 pence for one euro.
On Monday, the single European eu-usa agreement weighs euro currency had lost up to 1.30% against the dollar after the announcement of this compromise in Scotland, which provides customs duties of 15% on most EU exports.
This level is sufficient to “hinder the growth and inflation of the euro zone”, underlines Patrick Munnelly, analyst of Tickmill.
Certainly less severe than the 30% for a time envisaged by Washington. these surcharge is greater than 10% on which the European Central Bank (ECB) was based.
The agreement also includes an objective of 600 billion additional European investments in the United States.
What possibly motivate new interest rate drops. despite the break marked in July by the ECB, after a long cycle of declines.
Chinese. American officials also found themselves in Stockholm on Tuesday for a second day of negotiations on reciprocal customs duties between the two countries, with the flagship objective of an extension of the 90 -day pricing truce obtained eu-usa agreement weighs euro in Geneva in May.
“While solid economic data testifies to a lasting resilience of the American economy”. and “inflation remains higher than the target” of the Fed, recent trade agreements “have attenuated the immediate threat of customs duties,” notes Daniela Sabin Hathorn, of Capital.com.
“The absence of larger news leads the markets to carry out a rebalancing at the end of the month” to the dollar. explains Bob Savage, analyst at BNY.
The market tables in parallel with the fact that the Federal Reserve (Fed). which meets from Tuesday, will leave its interest rates on Wednesday, in a range between 4.25% and 4.50%, and will not lower them until September.
Bover will remain attentive this week to a series of American indices including GDP in the second quarter on Wednesday. PCE inflation in June Thursday and several employment reports in the United States – particularly unemployment for July published on eu-usa agreement weighs euro Friday.
Eu-usa agreement weighs euro
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