A bold statement from US Commerce Secretary Howard Lutnick has sparked interest and raised questions about the durability of the EU-US trade deal. Lutnick's remarks during European trading hours on Wednesday left no room for doubt: the trade agreement between the European Union and Washington is here to stay.
But here's where it gets controversial: while Lutnick's words may have been reassuring, their impact on the market was minimal. The US Dollar, it seems, remained largely unaffected by the Secretary's comments, offering little to no breakthrough on the US-EU trade outlook. As of writing, the US Dollar Index (DXY) has shown resilience, trading marginally higher around 98.60 after giving back early gains.
Now, let's dive into the numbers. The table below presents the percentage change of the US Dollar (USD) against major currencies today. Interestingly, the USD was the weakest against the New Zealand Dollar, with a 0.27% decrease.
USD EUR GBP JPY CAD AUD NZD CHF
USD 0.04% 0.13% -0.16% -0.03% -0.23% -0.27% 0.11%
EUR -0.04% 0.09% -0.19% -0.07% -0.27% -0.31% 0.07%
GBP -0.13% -0.09% -0.30% -0.16% -0.36% -0.40% -0.02%
JPY 0.16% 0.19% 0.30% 0.12% -0.07% -0.12% 0.26%
CAD 0.03% 0.07% 0.16% -0.12% -0.20% -0.24% 0.14%
AUD 0.23% 0.27% 0.36% 0.07% 0.20% -0.04% 0.34%
NZD 0.27% 0.31% 0.40% 0.12% 0.24% 0.04% 0.38%
CHF -0.11% -0.07% 0.02% -0.26% -0.14% -0.34% -0.38%
The heat map provides a visual representation of these percentage changes, with the base currency on the left column and the quote currency on the top row. For instance, the percentage change for USD/JPY is 0.16%, indicating a slight increase in the value of the US Dollar against the Japanese Yen.
And this is the part most people miss: while Lutnick's comments may not have moved the markets significantly, they highlight the stability and resilience of the EU-US trade deal. With ongoing studies on drones and robots from China, the focus on international trade and its impact on currencies remains crucial.
So, what do you think? Is the EU-US trade deal truly durable, or is there more to the story? Feel free to share your thoughts and insights in the comments below!
