The decline in the euro was accelerated on Monday, by placing the currency of the largest one-day decline compared to the dollar from May, because investors have bet that the EU and the US trade agreement will harm the European economy.
The unique currency fell by as much as 1 percent compared to the dollar to $ 1.162 in the afternoon trading, and weakened by as much as 0.9 percent compared to the point.
According to the agreement reached on Sunday, most EU exports in the United States will face a duty of 15 percent.
The customs rate is lower than 30 percent of how American President Donald Trump threatened to impose block from 1. Augusta, but investors warned of the dangers for the European export sector.
“It is great that they have reached an agreement, but except noise, it is still a deterioration of trade relations, not improvement,” said Trevor Greetham, the head of the department for several types of assets in Royal London Asset Management.
European shares have given up on earlier winnings because the initial relief that the agreement was reached for concerns about its impact on the EUROZONE economy. German Dax fell by 1 percent to late afternoon trading, SEEbiz reports.
The growing discomfort in markets came after the agreement caused sharp criticism of the French Prime Minister Francois Bayrou, who said the block “subdued”.
Leaders of the extremely right in France and Germany have also referred to the agreement.
The President of the European Commission Ursula Von Der Leyen agreed on Sunday, agreed on Sunday, said the agreement “creates security in uncertain times … for citizens and firms on both sides of the Atlantic”.
Speaking in Scotland Monday, Trump said he plans to set up the customs rate up to 20 percent “for the rest of the world”, thinking of countries that do not make special trade agreements with the United States.
He added that he plans to publish customs in pharmaceutical products “in the near future”.
