Forex News: U.S. Dollar Rises Following US-EU Trade Deal

U.S. Dollar Rises Following US-EU Trade Deal

(RTTNews) - The U.S. dollar strengthened against other major currencies in the European session on Monday, after the United States announced the "biggest-ever" trade deal with the European Union, under which a 15-percent tariff would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals, and semiconductors.

U.S. President Donald Trump said the 27-nation EU bloc had agreed to purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments as part of the deal.

Meanwhile, senior U.S. and Chinese negotiators are due to meet in Stockholm later today, with reports suggesting that the world's two biggest economies could agree a 90-day extension to their trade war truce.

Elsewhere, key differences have emerged between Trump's statements and Japan's official version of their bilateral agreement.

The White House has published a fact sheet but further details of the implementation of the U.S.-Japan deal remain unclear.

U.S. Commerce Secretary Howard Lutnick on Sunday ruled out a possible deadline extension to countries wishing to negotiate trade deals.

"So no extensions, no more grace periods. August 1, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go," Lutnick told "Fox News Sunday".

In the European trading today, the U.S. dollar rose to a 1-week high of 1.1672 against the euro, from an early 4-day low of 1.1771. The greenback may test resistance around the 1.15 region.

Against the pound and the yen, the greenback advanced to 1-week highs of 1.3407 and 148.34 from early lows of 1.3453 and 147.52, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.33 against the pound and 149.00 against the yen.

Against the Swiss franc, the Australia and the New Zealand dollars, the greenback climbed to 6-day highs of 0.7991, 0.6523 and 0.5971 from early lows of 0.7945, 0.6586 and 0.6033, respectively. The greenback is likely to find resistance around 0.80 against the franc, 0.63 against the aussie and 0.58 against the kiwi.

The greenback advanced to a 10-day high of 1.3742 against the Canadian dollar, from an early low of 1.3742. On the upside, 1.38 is seen as the next resistance level for the greenback.

Looking ahead, Canada wholesale sales data for June and U.S. Dallas Fed manufacturing index for July are slated for release in the New York session.

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