Euro Rises on U.S.-EU Trade Pact Amid Global Economic Focus

The euro gained momentum on Monday, buoyed by the announcement of a pivotal trade framework between the United States and the European Union. This latest agreement comes as part of a series of efforts to stave off a looming global trade war.

Presidents Donald Trump and Ursula von der Leyen revealed this plan in Scotland, establishing a 15% tariff on EU imported goods—half of what was initially threatened for August. As senior U.S. and Chinese representatives prepare for talks in Stockholm, the goal remains to extend a trade truce, with investors now turning their attention to corporate earnings and central bank meetings.

Rodrigo Catril, a senior currency strategist at the National Australia Bank, noted the increased transparency provided by this deal should spur global investment. The pact outlines a significant $600 billion EU investment in the United States, paralleling a similar Tokyo agreement. While the decision reduces tariffs on vehicles, many in Europe find the 15% tariff too high versus a hoped-for zero-tariff agreement.

(With inputs from agencies.)