# How U.S.-EU relations could impact the cross currency basis

> The article analyzes the Three Month SOFR-€STR cross-currency basis, which narrowed from 175bp to 100bp and then widened back above 200bp since June 2024. It suggests the spread reflects relative USD and euro liquidity.

- Date: 2025-08-18 · published 2025-08-18T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/23539-how-u-s-eu-relations-could-impact-the-cross-currency-basis
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Cross-currency basis moves affect hedging costs for importers and exporters but have no direct link to feed commodity supply or demand. Impact on prices is negligible.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2020-07-28 | [Rates Spark: The weaker USD, the Fed and cross currency \| articles \| ING THINK](https://feedsoft.ai/events/52298-rates-spark-the-weaker-usd-the-fed-and-cross-currency-articles-ing-think.md) | 0.0% | +0.5% |
| EURUSD | 2017-05-31 | [EUR/USD Eurozone Inflation Data to Overshadow EU’s Political Concerns - Currency Live](https://feedsoft.ai/events/71213-eur-usd-eurozone-inflation-data-to-overshadow-eu-s-political-concerns-currency.md) | +0.7% | +1.0% |
| EURUSD | 2018-10-28 | [Sterling remains under pressure during Brexit negotiations. \| The Currency Blog](https://feedsoft.ai/events/62810-sterling-remains-under-pressure-during-brexit-negotiations-the-currency-blog.md) | -0.1% | -0.9% |
| EURUSD | 2018-02-07 | [Euro spurs currency experts to recalibrate outlook \| The National](https://feedsoft.ai/events/66706-euro-spurs-currency-experts-to-recalibrate-outlook-the-national.md) | -0.1% | +0.1% |
| EURUSD | 2020-08-28 | [Euro (EUR USD) Revives Global Challenge for the Dollar’s Currency Crown - Bloomberg](https://feedsoft.ai/events/51823-euro-eur-usd-revives-global-challenge-for-the-dollar-s-currency-crown-bloomberg.md) | +0.1% | -1.7% |

## Sources

- reuters.com: https://www.reuters.com/plus/cme/how-us-eu-relations-could-impact-the-cross-currency-basis

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.