The conclusion of the agreement has removed fears about increasing duties that could damage economic activity.
The Euro was strengthened after the news of the trade transaction between the United States and the European Union. The Reuters reported it on Monday, July 28th.
The Euro reached 1.1753 dollars, increased by 0.1% after an initial growth of 0.3%.
At a meeting in Scotland, US president Donald Trump and European Commission leader Ursula Von der Lyain announced that the tariff for importing goods from the EU would be 15% – half as previously planned. Trump said the EU plans to invest nearly $ 600 billion in the United States, as well as significantly increase American energy and weapons purchases.
Despite the agreement, many in Europe consider the tariff of 15% too high. The European Union relies on the full removal of tariffs.
The main strategist of Mizuho Securities, Omori Shocks said investment obligations will lead to the flow of capital from Europe and will eventually strengthen the Euro -related dollar -related dollar.
“Along with, the weak growth prospects and worsening payment balance contribute to a gradual decrease in the euro/dollar pair, despite a temporary increase,” he said.
The publication also noted that after signing a trading transaction between the United States and the EU, oil prices increased. The deal prevented a major trade war between two allies, which is almost a third of the world’s trade, and could limit demand for fuel.
Brent cells increased by 20 cents, or 0.29%, to 68.64 dollars per barrel, while the price of American Oil of West Texas intermediate brand increased by 15 cents, or 0.23%, up to 65.31 dollars per barrel.
Remember, on July 27, the United States and the EU entered into a trading deal. The duty that the US imported for the EU would be 15% (as the EU duty for the United States), and not 30%, as if the agreement had not reached.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.