Euro records one month’s height after Trump delays the European Union tariff

Written by Kevin Backland and Emana Cooper

TOKIO/London (Reuters) -The euro reached the highest level for one month against the US dollar on Monday after US President Donald Trump fell 50 % at the European Union’s shipments as of June 1, as the bloc asked for time “to reach a good deal.”

The dollar continued to decrease against a wide range of other currencies, as Trump’s policy repercussions, as well as the comprehensive bill for spending and tax bill, have transformed investors on American assets.

“Sell Americana”, who was clearly the dominant topic in April, had returned to the exhibition, “said Ray Unitril, President of FX Research at the National Australia Bank.

“The markets may have taken opinion – and perhaps right – as we ultimately throw a customs tariff between the United States and the European Union will not be 50 %, but how do we get there frankly guessing anyone at the present time.”

The euro rose up to 0.55 % to $ 1.1418 for the first time since April 29. It increased by 0.17 % a day at $ 1.1375, making this year to 10 %.

Many of the decline in the dollar in the past two months have benefited from the euro, as investors targeted a group of non -American markets.

Christine Lagarde, President of the European Central Bank, said on Monday that the individual currency can become an applicable alternative to the dollar, the world’s backup currency, if governments can enhance the financial and security architecture of the mass.

“The ongoing changes create the opening to” the global euro moment, “Lagard said in a lecture in Berlin.

The pound sterling increased by 0.39 % to its highest level since February 2022 and was the last time by 0.15 % at $ 1.356.

Safe and Swiss armed yen diluted against the background of improved investor morale. The dollar was another 0.2 % against the yen at 142.84, and it was fixed against the Swiss franc at 0.821 francs.

Trump announced his decision to delay the European Union tariff until July 9 on Sunday after a call with the President of the European Commission, Ursula von der Layen, who asked for more time to reach an agreement. July 9 is the end of the 90 -day stoppage on “Tahrir Day” drawings in Trump in the European Union and many other commercial partners.

This announcement, despite the encouragement of investors, is a flagrant reminder of the suddenly how much the US trade policy is transmitted.

“After the latest turning point from Trump, we will, of course, wait and see what is happening after that. It is possible that a deal with the European Union can be reached by July 9,” said Michael Weester, the currency strategy in Commerzbank.