Key events
Closing summary: Is US-EU trade deal a relief, or ‘submission’?
France’s prime minister, François Bayrou, said the EU had capitulated to Donald Trump, and the euro fell against the US dollar. But there has also been some relief that the US-EU trade deal may at least end the “will they, won’t they” speculation that has dominated the spring and summer.
The dollar’s strength may be short-lived, according to Javier Corominas, director of global macro strategy at Oxford Economics, a consultancy. He said:
FX markets have punished the greenback this year on two negative US-specific developments: heightened policy uncertainty and the negative real income shock for US consumers following the tariff announcements.
On a relative basis, the latter is expected to be worse for US growth than the global demand shock experienced by exporters to the US, where some…
