Euro Rallies as US-EU Trade Pact Stabilizes Global Markets

The euro gained after a US-EU trade deal helped ease concerns over a global trade war, while central bank meetings in the US and Japan are in focus. The pact introduces a 15% tariff on EU goods, easing fears of harsher tariffs. Investors are now eyeing corporate earnings and bank policy signals.

The euro experienced a slight increase on Monday following the announcement of a framework trade agreement between the United States and the European Union. This development, aimed at preventing a global trade war, comes amid central bank meetings in both the US and Japan.

High-level discussions in Scotland saw U.S. President Donald Trump and European Commission President Ursula von der Leyen unveil the deal, which includes a 15% import tariff on EU goods—a significant reduction from previously suggested rates. As a result, the euro rose to $1.1753, marking a stable performance in currency markets.

Despite the relief surrounding trade, senior negotiators from the US and China prepare to meet in Stockholm with hopes of extending a tariff truce. Meanwhile, financial markets are poised for corporate earnings reports and insights from central bank meetings, as investors remain attuned to economic growth prospects.

(With inputs from agencies.)