The euro rose slightly on Monday after news of the conclusion of a framework trade agreement between the United States and the European Union, which is the latest in a series of agreements to avoid a global trade war, while the spotlight is also on the meetings of central banks in the United States and Japan.
At their meeting in Scotland on Sunday, US President Donald Trump and European Commission President Ursula von der Line stipulated that the agreement stipulates the imposition of 15 percent customs duties on the imports of the European Union, which is the half average that Trump threatened from August 1.
The euro settled at $ 1.1753, up 0.1 percent after it raised at the beginning by 0.3 percent. The unified currency increased by 0.2 percent to 173.64 yen, high to the fifth consecutive session to its highest level in a year.
With concerns about the economic repercussions of punitive customs duties, investors turn into corporate profits and central bank meetings in the United States and Japan in the next few days.
“It might be a positive week, just because we have become the rules of the game, if you will … now after there is more clarity, you may think that it is not only in the United States, but around the world, there will be more willingness to consider investment, consider expansions, and consider a citizen Opportunities.
However, a detailed trade agreement between the two largest elusive economies remains, although senior negotiators from the United States and China are scheduled to meet in Stockholm on Monday. The dollar did not witness a change mentioned at 147.65 yen. The dollar index, which tracks the performance of the US currency against the main currencies, settled at 97.582.
It is expected that both the Federal Reserve and the Bank of Japan will keep the interest rates fixed in monetary policy meetings this week, but traders will monitor the subsequent statements to evaluate the timing of the following moves.
Trump stated that the European Union intends to invest about $ 600 billion in the United States and increase its purchases of US energy and military equipment.
This agreement is similar to an agreement concluded with Tokyo negotiators last week to invest Japan about $ 550 billion in the United States and impose customs duties by 15 percent on its cars and other imports.
Many in Europe will still see the 15 percent basic customs duties, unlike the mass hopes at the beginning of the agreement to cancel the customs duties.
Shoki Omuri, chief office strategy in Mezoho Securities, said that the investment item in the agreement will attract capital flows out of Europe, which enhances the value of the dollar in general against the euro, and added: “The weak prospects for the relative growth and the deterioration of the balance of payments are justifying a gradual decrease in the value of the euro/ the US dollar once the initial improvement is removed, despite the sudden rise that occurred between the eve Overnight. ”
China faces a final date on August 12 to conclude a permanent trade agreement with the United States. It is expected that the two parties will extend the truce of customs duties for another three months in the Stockholm talks, according to the South China Morning Post on Sunday, quoting well -informed sources.
The shares and other sensitive assets of risk were supported by a week before the results of companies.
The quarterly results are scheduled to be issued in the coming days from Apple, Microsoft, Amazon and Meta, the parent company of Facebook, which are four companies from the “Seven Great Companies”, whose shares greatly affect standard indicators.
In the world of encrypted currencies, the Ethereum price jumped by 1.5 percent to $ 3905.79, its highest level since December 2024.
On Friday, the US dollar is submitted, supported by strong economic data, indicating that the “Federal Reserve” may wait to resume interest rate discounts.
The pound sterling was trading at $ 1.3443, without little change. The Australian dollar recorded $ 0.6568, while the New Zealand dollar settled at $ 0.6014, unchanged.
