EUR/USD edges higher as US-France trade deal avoids worst-case scenario

EUR/USD gained 0.15% to 1.0835 in early European trading as France's finance minister confirmed a framework trade deal with the US, describing it as the "best possible compromise." The agreement helped ease immediate concerns about potential tariff escalations that could have severely impacted European exports. While wine and spirits remain subject to ongoing negotiations for exemptions, the deal removes the threat of broader punitive measures. Market participants view this development as moderately positive for the euro, though concerns persist about the long-term impact on European economic growth. Technical indicators show EUR/USD testing resistance at 1.0850, with support established at 1.0800. The pair's near-term direction will likely depend on upcoming ECB policy signals and US economic data releases. Traders should monitor any finalization of the trade terms, as unfavorable details could reverse current gains.