Euro hits one-month high after Trump's decision to delay tariffs against EU

On Monday, the euro hit a one-month high against the dollar. This occurred after US President Donald Trump reversed his decision to impose 50% tariffs on EU imports. The American leader gave time to the bloc until July 9 to reach a trade agreement.

Meanwhile, the dollar maintained last week's downward trend against other currencies. According to Reuters, this is due to changes in Trump's policies, as well as his spending and tax cut bill which reduced investor interest in US assets.

Experts at National Australia Bank emphasize that the likelihood of 50% reciprocal tariffs between the US and the EU is decreasing. However, the de-escalation, which occurred just two days after Trump promised to impose duties, highlights the volatility of US trade policy.

Government figures estimate that the House version of the tax bill would add $3.8 trillion to the US national debt over ten years. The existing debt is currently $36.2 trillion. In this regard, Pepperstone analysts say that many market participants expect a multi-year decline in the dollar.