Euro's Uncertain Future Amid Unbalanced Trade Deal

The euro is struggling to regain its footing as investors face the reality that the recent trade deal between the United States and the European Union disproportionately benefits the former, without significantly boosting the EU's economic outlook.

On Monday, France described the trade agreement as a 'dark day' for Europe, criticizing the concessions made to U.S. President Donald Trump. Adding to concerns, German Chancellor Friedrich Merz warned of 'significant' economic harm due to new tariffs imposed on EU goods.

The euro experienced its largest one-day decline in more than two months, while the U.S. dollar gained strength, further impacting global currencies. As central banks in the U.S. and Japan prepare to announce rate decisions, traders will closely monitor potential economic impacts.

(With inputs from agencies.)