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Yahoo
29-07-2025
- Business
- Yahoo
Euro under pressure as US-EU trade deal fails to impress
By Rae Wee SINGAPORE (Reuters) -The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "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," said Ray Attrill, head of FX research at National Australia Bank. "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." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "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," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Yahoo
29-07-2025
- Business
- Yahoo
Euro under pressure as US-EU trade deal fails to impress
By Rae Wee SINGAPORE (Reuters) -The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "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," said Ray Attrill, head of FX research at National Australia Bank. "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." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "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," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves. 登入存取你的投資組合
Yahoo
24-07-2025
- Business
- Yahoo
Yen, euro lifted by progress on trade
By Rae Wee SINGAPORE (Reuters) -The euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. The European Union and the U.S. are moving towards a trade agreement that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the U.S. dollar. The risk-sensitive Australian dollar rose to an eight-month high of $0.6604 early on Thursday. The euro steadied at $1.1768, hovering near a high of $1.1830 it hit earlier this month, which marked its strongest level in more than three years. "These trade frameworks agreed between the U.S. and the major economies are definitely positive for risk sentiment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "We actually anticipated a risk of the U.S. and the European Union getting into retaliation mode ... but that risk of a retaliation seems to have dissipated." Against the yen, the dollar dipped 0.03% to 146.38, extending its fall against the Japanese currency to a fourth straight session. While news of Japan's trade deal has lit a fire under domestic stocks, gains in the yen have been capped by lingering political uncertainty at home. Japanese Prime Minister Shigeru Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat. "In the near term, the yen will still face headwinds from ongoing political uncertainty. We still don't know what Prime Minister Ishiba will do ... so I think there is still some uncertainty with regard to the fiscal outlook in Japan and Bank of Japan policy," said Kong. Elsewhere, sterling was firm at $1.3582, after having gained 0.36% in the previous session. The dollar index was last little changed at 97.21, while the New Zealand dollar dipped 0.01% to $0.6046. Trade negotiations aside, markets will also be focused on a rate decision from the European Central Bank later in the day. Expectations are for policymakers to stand pat on rates, though markets will look out for what they say regarding the outlook for monetary policy. Investors generally expect one more ECB rate cut by the end of the year, most likely in December. 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
Yahoo
24-07-2025
- Business
- Yahoo
Yen, euro lifted by progress on trade
By Rae Wee SINGAPORE (Reuters) -The euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. The European Union and the U.S. are moving towards a trade agreement that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the U.S. dollar. The risk-sensitive Australian dollar rose to an eight-month high of $0.6604 early on Thursday. The euro steadied at $1.1768, hovering near a high of $1.1830 it hit earlier this month, which marked its strongest level in more than three years. "These trade frameworks agreed between the U.S. and the major economies are definitely positive for risk sentiment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "We actually anticipated a risk of the U.S. and the European Union getting into retaliation mode ... but that risk of a retaliation seems to have dissipated." Against the yen, the dollar dipped 0.03% to 146.38, extending its fall against the Japanese currency to a fourth straight session. While news of Japan's trade deal has lit a fire under domestic stocks, gains in the yen have been capped by lingering political uncertainty at home. Japanese Prime Minister Shigeru Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat. "In the near term, the yen will still face headwinds from ongoing political uncertainty. We still don't know what Prime Minister Ishiba will do ... so I think there is still some uncertainty with regard to the fiscal outlook in Japan and Bank of Japan policy," said Kong. Elsewhere, sterling was firm at $1.3582, after having gained 0.36% in the previous session. The dollar index was last little changed at 97.21, while the New Zealand dollar dipped 0.01% to $0.6046. Trade negotiations aside, markets will also be focused on a rate decision from the European Central Bank later in the day. Expectations are for policymakers to stand pat on rates, though markets will look out for what they say regarding the outlook for monetary policy. Investors generally expect one more ECB rate cut by the end of the year, most likely in December.
Yahoo
18-07-2025
- Business
- Yahoo
Morning Bid: Markets stoic over Powell's shifting fate
A look at the day ahead in European and global markets from Rae Wee The markets were in a calm but sombre mood on Thursday after a dramatic session on Wall Street driven by renewed uncertainty over the tenure of Federal Reserve Chair Jerome Powell. U.S. President Donald Trump soothed investors' nerves a bit by stating he was not planning to fire Powell, but he confirmed he floated the idea with Republican lawmakers and kept his options open, saying he would love for the Fed Chair to resign. Stocks in Asia were largely muted on Thursday while Wall Street futures fell, although European stock futures edged higher after slipping during the cash session on Wednesday. The long-running Trump-Powell saga continues to undermine the dollar, which on Thursday was on fragile footing given lingering worries over the Fed's independence. With calm mostly restored to the markets, investors have enough earnings reports and data releases on their plate to keep them distracted for now, barring any stepped-up attacks on Powell. Top of mind are results from TSMC, the world's main producer of advanced AI chips, and streaming giant Netflix, both expected later in the day. TSMC, a key supplier to Nvidia and Apple, is expected to post a 52% jump in second-quarter profit to record levels, although U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. As for Netflix, the bar is high for it to deliver a result that could impress investors. They are likely to focus on the company's expansion into live sports and the growth of its ad-supported tier. Over in the UK, Thursday's jobs numbers could provide further clarity on the outlook for domestic interest rates. Pay growth in Britain is expected to have slowed further in the three months to May with the unemployment rate likely to have stayed steady at 4.6%. Still, Bank of England policymakers could turn more cautious on further rate cuts this year, after data on Wednesday showed Britain's annual rate of consumer price inflation unexpectedly rose to its highest in more than a year, at 3.6% in June. The Australian dollar fell sharply in the Asian session after domestic employment rose only marginally in June, while the jobless rate jumped to its highest since late 2021. Japan's exports fell for a second straight month as sweeping U.S. tariffs took a toll on the country's manufacturers, and Canadian retailer Alimentation Couche-Tard pulled its $47 billion bid to buy Seven & i Holdings, citing a lack of constructive engagement by the Japanese retailer. Key developments that could influence markets on Thursday: - TSMC, Netflix earnings - British labour market data (May) - U.S. weekly jobless claims - Fed's Waller speaks Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Rae Wee; Editing by Edmund Klamann) 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
