On July 28, 2025, the euro saw a modest rise on international currency markets. This followed the signing of a trade agreement between the United States and the European Union. The agreement is regarded as one of the most significant recent efforts to avert a global trade war.
Trade deal: new tariff, new opportunities?
U.S. President Donald Trump and European Commission President Ursula von der Lyayen met in Scotland on Sunday and announced a new trade agreement. Under the deal, a 15% tariff will be imposed on goods imported from Europe to the U.S. — much lower than the 30% Trump had previously threatened.
Following the news, the euro rose to $1.1753 (+0.1%) against the U.S. dollar. Against the Japanese yen, it strengthened to 173.64, reaching its highest point in a year. This marks the fifth consecutive day of euro gains.
Is investment flow boosting the dollar?
According to Trump, Europe plans to invest nearly $600 billion in the U.S. and significantly increase purchases of American energy and military goods. Some economists believe this could boost capital flow from Europe to the U.S., potentially leading to a depreciation of the euro over the longer term.
