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.
This article was written by Eamonn Sheridan at investinglive.com.
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