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CNA
26-05-2025
- Business
- CNA
Euro vaults to one-month high after Trump U-turn on EU tariffs
TOKYO/LONDON :The euro hit a one-month high against the dollar on Monday, after U.S. President Donald Trump backed down from threatened 50 per cent duties on European Union shipments from June 1, after the bloc asked for time to "reach a good deal." The dollar continued its decline against a broad swathe of other currencies as Trump's policy reversals, as well as his sweeping spending and tax-cut bill currently in legislation, turned investors off from U.S. assets. "The 'Sell America' theme, which obviously was the dominant theme back in April, is back on show," said Ray Attrill, head of FX research at National Australia Bank. "Markets have probably taken the view - and probably rightly so - that where we land eventually on a tariff situation between the U.S. and the EU is not going to be at 50 per cent, but how we get there is frankly anybody's guess at the moment." The euro climbed as much as 0.55 per cent to reach $1.1418 for the first time since April 29. It was last up 0.36 per cent on the day at $1.1394, bringing gains for the year so far to 10 per cent. Sterling rose by 0.39 per cent to its highest level since February 2022 and was last up 0.25 per cent on the day at $1.3574. The safe-haven yen and Swiss franc were overall weak as market sentiment improved, but they still appreciated against the U.S. dollar. The greenback slipped as much as 0.24 per cent to 142.23 yen, the lowest level this month, and edged to a 2-1/2-week low of 0.8193 franc. The U.S. dollar index, which tracks the currency against six other currencies, sank 0.15 per cent to 98.93, extending last week's 1.9 per cent decline. Trump announced the decision to put off EU tariffs until July 9 on Sunday, following a call with European Commission President Ursula von der Leyen, who asked for more time to reach an agreement. July 9 is the end of the 90-day pause on Trump's April 2 "Liberation Day" levies on the EU and most other trade partners. The de-escalation, just two days after Trump issued the threat, is a stark reminder of how suddenly U.S. trade policy can turn, even as it encouraged investors that deals can be struck and calmed worries about a global downturn. "Following Trump's latest U-turn, we will, of course, have to wait and see what happens next. It is possible that a deal with the European Union will be reached by 9 July," Commerzbank currency strategist Michael Pfister said. "However, it is questionable what has changed in terms of the fundamental problems following a phone call. One thing should be clear after Friday's announcement: the brief respite from tariffs that we enjoyed was only temporary," he said. In a possible nod to fiscal worries among investors, Trump also said on Sunday that his sweeping spending and tax cut bill is likely to see "significant" changes in the Senate. The House of Representatives' version of the tax bill is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the Congressional Budget Office. "What seems clear from the reconciliation bill ... is that Trump and (Treasury Secretary Scott) Bessent have shifted tactics, swiveling hard from fiscal conservatism and reduced spending to an outright pro-growth policy stance," said Chris Weston, head of research at Pepperstone.
Yahoo
26-05-2025
- Business
- Yahoo
Euro rises, dollar recovers as Trump gives more time for EU deal
By Kevin Buckland TOKYO (Reuters) -The euro and U.S. dollar rose against the safe-haven yen and Swiss franc on Monday after President Donald Trump set a July 9 deadline for a trade deal with the European Union, rescinding his threat of a 50% tariff from June 1. Trump announced the decision to reporters on Sunday following a call with European Commission President Ursula von der Leyen, who asked for more time to reach an agreement. July 9 is the end of the 90-day pause on Trump's "Liberation Day" levies on the EU and most other trade partners. The de-escalation just two days after Trump issued the threat is a stark reminder of how quickly and suddenly U.S. trade policy can turn, even as it encouraged investors that deals can be struck and calmed worries about a global downturn. The euro rose 0.3% to 162.60 yen, and added 0.2% against the dollar to reach the highest since April 30 at $1.1382. The dollar rebounded as much as 0.4% to 143.085 yen, after diving 1% on Friday. The risk-sensitive Australian dollar and British pound also held firm, with the Aussie ticking to the highest since May 7 at $0.6505 and sterling steady at $1.3535, just below Friday's peak of $1.3550, a level last seen in February 2022. "Markets have probably taken the view - and probably rightly so - that where we land eventually on a tariff situation between the U.S. and the EU is not going to be at 50%, but how we get there is frankly anybody's guess at the moment," said Ray Attrill, head of FX research at National Australia Bank. "If global growth expectations are going to suffer a renewed setback here, that's not good news for pro-cyclical, pro-growth currencies such as the Aussie dollar." Even as Trump delivered Europe some breathing room, his threat of a 25% duty on iPhones not made in the United States - which also significantly rattled investors on Friday - remains. But in a possible nod to fiscal worries in the market, Trump also said on Sunday that his sweeping spending and tax cut bill is likely to see "significant" changes in the Senate. The House of Representatives' version of the tax bill is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the Congressional Budget Office. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
26-05-2025
- Business
- Reuters
Euro rises, dollar recovers as Trump gives more time for EU deal
TOKYO, May 26 (Reuters) - The euro and U.S. dollar rose against the safe-haven yen and Swiss franc on Monday after President Donald Trump set a July 9 deadline for a trade deal with the European Union, rescinding his threat of a 50% tariff from June 1. Trump announced the decision to reporters on Sunday following a call with European Commission President Ursula von der Leyen, who asked for more time to reach an agreement. July 9 is the end of the 90-day pause on Trump's "Liberation Day" levies on the EU and most other trade partners. The de-escalation just two days after Trump issued the threat is a stark reminder of how quickly and suddenly U.S. trade policy can turn, even as it encouraged investors that deals can be struck and calmed worries about a global downturn. The euro rose 0.3% to 162.60 yen , and added 0.2% against the dollar to reach the highest since April 30 at $1.1382 . The dollar rebounded as much as 0.4% to 143.085 yen , after diving 1% on Friday. The risk-sensitive Australian dollar and British pound also held firm, with the Aussie ticking to the highest since May 7 at $0.6505 and sterling steady at $1.3535, just below Friday's peak of $1.3550, a level last seen in February 2022. "Markets have probably taken the view - and probably rightly so - that where we land eventually on a tariff situation between the U.S. and the EU is not going to be at 50%, but how we get there is frankly anybody's guess at the moment," said Ray Attrill, head of FX research at National Australia Bank. "If global growth expectations are going to suffer a renewed setback here, that's not good news for pro-cyclical, pro-growth currencies such as the Aussie dollar." Even as Trump delivered Europe some breathing room, his threat of a 25% duty on iPhones not made in the United States - which also significantly rattled investors on Friday - remains. But in a possible nod to fiscal worries in the market, Trump also said on Sunday that his sweeping spending and tax cut bill is likely to see "significant" changes in the Senate. The House of Representatives' version of the tax bill is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, according to the Congressional Budget Office.
Wall Street Journal
16-05-2025
- Business
- Wall Street Journal
Oil Futures Edge Higher on Possible Technical Recovery
0024 GMT — Oil futures edge higher in early Asian trade on a possible technical recovery after they posted back-to-back losses overnight. Thursday's oil-price selloff came after 'President Trump indicated the U.S. could be close to a deal in which Iran agrees to forgo nuclear weapons,' NAB's Ray Attrill says in a commentary. 'Were there to be an agreement that results in the lifting of sanctions, Iran has the capability to pump about 4 million barrels of oil per day, up from around 1.4 million barrels currently,' the head of FX Research adds. Front-month WTI crude oil futures are 0.2% higher at $61.75/bbl; front-month Brent crude oil futures are 0.2% higher at $64.65/bbl. (
CNA
08-05-2025
- Business
- CNA
CNA938 Rewind - Asian currencies rally amid greenback weakness
CNA938 Rewind Play Asian currencies rallied recently on hopes of a thaw in the US-China trade war and regional tariff deals with the Trump administration. While Tuesday brought a measure of stability, following a stunning 10% two-day leap for Taiwan's currency, Hong Kong's dollar was testing the strong end of its peg and the Singapore dollar has soared close to its highest in more than a decade. How long will this rally be sustained? And what impact does it have on consumers? Hairianto Diman and Susan Ng find out from Saktiandi Supaat, Chief FX Strategist, Head of FX Research & Strategy, Maybank
