EUR/USD surges on US-EU trade deal: 15% tariff framework boosts euro

EUR/USD has strengthened significantly following the announcement of a comprehensive US-EU trade framework agreement, establishing a blanket 15% tariff rate on most goods traded between the regions. This deal effectively prevents the threatened 30% tariffs that had been looming over transatlantic trade relations. Key provisions include zero tariffs on aircraft parts, semiconductor equipment, select chemicals, and agricultural products, with negotiations ongoing to expand the zero-tariff list. The agreement includes EU commitments to increase energy purchases from the US, potentially boosting dollar revenues but simultaneously strengthening European economic stability. Markets are interpreting this development as euro-positive, removing significant trade uncertainty that had weighed on European growth prospects. Technical indicators suggest EUR/USD could test resistance at 1.1000 in the near term, with support established at current levels. Traders should monitor implementation details and any additional sector-specific agreements that could further impact currency valuations.