FX.co ★ Euro Pushes Above $1.18 as EU Pauses US Trade Deal

The euro strengthened further above $1.18, rebounding from last week’s one-month low, after the European Parliament suspended the ratification of the US-EU trade agreement reached with US President Donald Trump last July in Scotland. The decision came in response to Trump’s announcement that he intends to raise a temporary import tariff from 10% to 15%, following the Supreme Court’s decision to block his broader tariff package. Uncertainty persisted over whether the new 15% rate would be applied immediately in the UK or the EU, despite assurances from US Trade Representative Jamieson Greer that existing agreements with roughly 20 countries would remain in place. The single currency also drew support from stronger-than-expected German business confidence, which rose to a six-month high. Investors now look ahead to inflation figures from Germany, France, and Spain for clearer indications of how the euro’s appreciation may influence price pressures and shape the European Central Bank’s policy outlook.