EUR/GBP weakens as US-EU trade deal backlash weighs on Euro sentiment
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The Euro falls for a second consecutive day against the British Pound as criticism mounts over the US-EU trade agreement. European leaders describe the deal as “unbalanced” and skewed in favor of Washington. EUR/GBP reversed from a near two-year high of 0.8753 on Monday, marking its sharpest daily drop since April. The Euro (EUR) continues to weaken against the British Pound (GBP) for a second consecutive day on Tuesday, dragged down by rising backlash to the US‑EU trade deal announced over the weekend. The agreement, reached Sunday by US President Donald Trump and European Commission President Ursula von der Leyen, is being criticized by European leaders as “unbalanced” and heavily biased in favor of the US. The strong criticism has undermined investor confidence in the Euro, putting pressure on EUR/GBP as markets reassess the Eurozone’s growth outlook and trade competitiveness. At the time of writing on Tuesday, the EUR/GBP cross extends its slide, trading around 0.8656 during the American trading session, down nearly 0.20% as bearish momentum persists. The EUR/GBP cross reversed sharply on Monday after touching its highest level in nearly two years at 0.8753 — a level last seen on November 21, 2023. The pair fell around 0.73%, marking its steepest single-day decline since April. The US-EU trade agreement has sparked widespread backlash across Europe, with European leaders pointing to the stark imbalance in terms. While the United States (US) secured major concessions, including a $750 billion Liquefied Natural Gas (LNG) export deal and $600 billion in investment targeting key American industries, the European Union (EU) faces a flat 15% tariff tariff on a wide range of exports. That marks a sharp jump from the 1.2% average tariff rate EU goods faced in 2024, affecting major sectors like automobiles, machinery, and consumer products. Although a “zero-for-zero” clause exempts…
Filed under: News - @ July 29, 2025 7:34 pm