Asia Summary and Highlights 28 Jul
The E.U. and U.S. reach an agreement on trade
U.S. equities upbeat on U.S. EU deal
Asia Session
On late Sunday, it is announced the U.S. and EU have reached a trade agreement with a 15% reciprocal tariff. There is 0% tariffs on certain products from both the U.S. and EU, while the EU also pledged $600 billion in investment in the U.S.. Trump mentioned a purchase of $750 billion in energy. EUR/USD opened 14 pips stronger than Friday's close to 1.1754, with a spike to 1.1770 before trading 0.05% higher at 1.1746 now.
U.S. equities are upbeat on U.S.- EU deal. Risk sentiment is reacting positively against the deal and headline suggesting U.S.-China tariffs will be further delayed to facilitate negotiations. U.S. three major equity indexes opened higher and stay elevated while regional equities retraced earlier gains. AUD/USD is trading unchanged at 0.6566 after opening 8 pips higher than Friday's close, NZD/USD is trading 0.1% lower at 0.6010 while USD/CAD slips 0.04%. Else, USD/JPY is trading 0.08% higher at 147.77 as JGB yields underperform, GBP/USD is unchanged. Major currency pairs have closed their opening gap at least once in the Asia session.