Euro Struggles as Global Trade Pact Sparks Market Jitters
The euro remained steady near a one-month low amid recent U.S.-EU trade accord impacts and upcoming Federal Reserve and Bank of Japan meetings. U.S.-China talks showed progress without major breakthroughs, while inconsistent trade policies weakened the dollar, benefiting the euro. Central banks' policy decisions remain a key focus for investors.
The euro showed signs of stabilization near its lowest point in a month, amidst significant losses this week due to the U.S.-EU trade pact. Investors' attention shifts towards policy meetings from the Federal Reserve and the Bank of Japan.
On a separate note, U.S. and Chinese officials resolved to continue their 90-day tariff truce after constructive talks in Stockholm. Despite the lack of major breakthroughs, there is optimism that President Donald Trump might extend the truce beyond its August 12 deadline.
The recent U.S.-EU framework agreement, while welcomed by some, has raised concerns in Europe due to its perceived bias towards U.S. interests. Analysts highlight that market reactions to such trade agreements are increasingly seen as symbolic rather than indicators of a structural resolution.
(With inputs from agencies.)
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