# EU-U.S. trade deal dented euro strength. Strategists say it may not last

> The euro fell more than 2% against the dollar after the EU and US struck a framework trade deal that sets a 15% baseline tariff on EU goods. Strategists say the euro may weaken further in the short term but could recover into 2026. Euro-zone Q2 growth was 0.1% while US GDP grew 3%.

- Date: 2025-07-31 · published 2025-07-31T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/23979-eu-u-s-trade-deal-dented-euro-strength-strategists-say-it-may-not-last
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A firmer dollar lowers the dollar cost of US-priced commodities and feed imports for buyers. A weaker euro also makes EU feed exports less competitive, which can shift trade flows.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-05-01 | [The Bank of Japan may have limited tools to deal with the weak yen, but that's not its focus](https://feedsoft.ai/events/42074-the-bank-of-japan-may-have-limited-tools-to-deal-with-the-weak-yen-but-that-s.md) | +0.3% | -1.0% |
| DXY | 2021-01-28 | [ECB in ‘Currency War’ Over Euro, Commerzbank Strategist Says - Bloomberg](https://feedsoft.ai/events/49375-ecb-in-currency-war-over-euro-commerzbank-strategist-says-bloomberg.md) | +0.2% | -0.1% |
| DXY | 2025-07-29 | [Euro hits one-month low after reality check on US-EU trade deal, markets await cenbank decisions — TradingView News](https://feedsoft.ai/events/23981-euro-hits-one-month-low-after-reality-check-on-us-eu-trade-deal-markets-await.md) | +0.3% | -0.2% |
| DXY | 2025-11-17 | [Dollar strengthens as traders await return of U.S. data \| Reuters](https://feedsoft.ai/events/22148-dollar-strengthens-as-traders-await-return-of-u-s-data-reuters.md) | +0.7% | -0.8% |
| DXY | 2022-10-14 | [Bank of Canada says persistent U.S. dollar strength could force interest rates higher](https://feedsoft.ai/events/39351-bank-of-canada-says-persistent-u-s-dollar-strength-could-force-interest-rates.md) | +0.2% | -2.4% |
| EURUSD | 2019-07-29 | [The Euro-Dollar Rate Could Bounce if Fed Cuts Rates but It Won't Last, Analysts Say](https://feedsoft.ai/events/58316-the-euro-dollar-rate-could-bounce-if-fed-cuts-rates-but-it-won-t-last-analysts.md) | -0.1% | +0.2% |
| EURUSD | 2020-09-11 | [Euro Retreats after ECB Blows Hot and Cold On Currency Strength and 'No Deal' Brexit Risk Builds](https://feedsoft.ai/events/51337-euro-retreats-after-ecb-blows-hot-and-cold-on-currency-strength-and-no-deal.md) | -0.5% | -1.1% |
| EURUSD | 2018-04-12 | [Euro in Danger as Strength Now a Pressing Issue for the European Central Bank](https://feedsoft.ai/events/65729-euro-in-danger-as-strength-now-a-pressing-issue-for-the-european-central-bank.md) | -0.0% | -4.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2025/07/31/eu-us-trade-deal-dented-euro-strength-strategists-say-it-may-not-last.html

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