The EU-US trade framework 'deal' has been met with mixed responses.
A couple of analyst comments (this via Reuters):
Ray Attrill, head of FX research at National Australia Bank
- "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned"
- "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth."
Thierry Wizman, global FX and rates strategist at Macquarie Group
- "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies,"
Seems to be a bit of both in play. The argument in favour of US dollar strength is the more broad USD rise right across tha majors' board. Its not only about a lower EUR.
