Euro Stumbles Amid Unfavorable U.S.-EU Trade Deal
The euro weakened as an unfavorable U.S.-EU trade deal emerged, raising concerns over the Eurozone's economic prospects. France criticized the agreement, which imposes a 15% tariff on EU goods, impacting German exporters. The strong dollar surged against global currencies, with Federal Reserve and BOJ rate decisions also in focus.
The euro saw a significant decline on Tuesday, grappling with investor concerns following a trade deal between the U.S. and the European Union. The terms largely benefited the U.S., prompting criticism from European leaders, who warned about detrimental impacts on the bloc's economic outlook.
In particular, France denounced the trade agreement as a 'dark day' for Europe, arguing that it disproportionately favored the U.S. with a 15% tariff placed on EU goods. Similarly, German Chancellor Friedrich Merz expressed concerns about 'significant' economic harm due to these tariffs.
The euro's weakness bolstered the U.S. dollar, increasing its value against a basket of currencies. Meanwhile, global markets also focused on upcoming rate decisions from the Federal Reserve and the Bank of Japan, highlighting a busy week for economic developments.
(With inputs from agencies.)
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