The United States and the European Union are in the final stages of clinching a trade deal, aiming to avoid an immediate trade war. Following the announcement of the US-EU tariff agreement, the US dollar strengthened against major currencies, including the euro and the British pound. Despite the deal, the euro has experienced its strongest decline in two months and continues to struggle, reflecting market skepticism and criticism that the agreement may not bring the anticipated economic stability. The British pound also fell to a 10-week low against the US dollar amid the ongoing trade negotiations. The deal has prompted some soul-searching within the EU over its diminished trade influence, as the details are rapidly being finalized.