President Donald Trump announces a trade agreement between the United States and the European Union with chairman of the European Commission Ursula von der Leyen.
The euro rose on Monday after the United States had reached a framework trade agreement with the European Union.
US President Donald Trump and President of the European Commission Ursula von der Leyen announced the deal during a meeting in Scotland on Sunday.
The deal will see a rate of 15% on EU goods in the US that were imported into the US – to impose half of what Trump had threatened from 1 August.
“We agree that the rate will be a rate of 15%directly for cars and everything else,” Trump announced from Scotland. “So we have a rate of 15%. We have the opening of all European countries that I think I could say they were essentially closed.”
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US President Donald Trump meets President Ursula von der Leyen of the European Commission, in Turnberry, Scotland, Great Britain, July 27, 2025. (Reuters / Evelyn Hockstein / Reuters -photos)
Von der Leyen said that Europe will also buy $ 150 billion in American energy as part of the deal, in addition to making $ 600 billion in other investments in the US
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The Framework -deal is comparable to one who will be falsified last week with Tokyo negotiators who will see Japan who invests around $ 550 billion in the US and imposed a rate of 15% on his cars and other imports.
At the beginning of Monday the euro was around $ 1.18.
The newest development comes as the attention of investors shifts to business income and central banking meetings in the US and Japan.
US President Donald Trump meets President Ursula von der Leyen of the European Commission (not depicted), in Turnberry, Scotland, Great -Britain, July 27, 2025. (Reuters / Evelyn Hockstein / Reuters -photos)
Rodrigo Catril, senior currency strategist at National Australia Bank, predicted that this week could be positive, “just purely from the fact that we now know the rules of the game.”
File: US Dollar and Euro Banknotes can be seen in this illustration on July 17, 2022. (Reuters/Dado Ruvic/Illustration/Reuters -photos)
“Now that there is more clarity, you would think that not only in the US, but all over the world, there will be a little more willingness to look at investments, look at extensions and see where the opportunities are,” said Catril on a Nab podcast.
In the meantime, high American officials are expected to meet their Chinese counterparts in Stockholm later on Monday, aimed at extending a trade reinforcement and the prevention of steep tariff increases.
China is confronted with a deadline of 12 August to reach a sustainable trading pact with the US, no breakthrough is expected in the US and China Talks in Stockholm, but analysts said that an expansion of a trade back barracks that was beaten was probably.
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The US dollar went up on Friday, reinforced by solid economic data that suggested that the Federal Reserve could take its time when resuming interest rates. Both the FED and the Bank of Japan are expected to keep the rates stable during this week’s policy meetings, but traders focus on the subsequent comments to measure the timing of the following movements.
