The euro skidded in European trade on Monday to a five-week trough against the US dollar, as concerns about a US recession diminished after a US-China deal to pause tariffs for 90 days in a huge trade achievement.

It comes following intense negotiations between US and Chinese officials in Switzerland until a preliminary trade deal was announced.

The Price

The EUr/USD price fell 1.3% today to $1.1099, the lowest since April 10, with a session-high at $1.1246.

The pair closed up 0.2% on Friday, the first profit in three days away from multi-week lows.

The pair lost 0.45% last week, the third weekly loss in a row as the risk appetite improved markedly.

The US Dollar

The dollar index rallied over 1.25% on Monday to a five-week high at 100.71 against a basket of major rivals.

The US and China agreed on suspending most tariffs on each other for 90 days after negotiations in Switzerland, in a huge step towards relaxing trade tensions between the worlds top two countries.

According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.

US Treasury Secretary Scott Bessent hailed the very productive talks with Chinese counterparts, and praised the place of negotiations besides the serene Geneva lake.

Bessent asserted the tariff pause will carry on for 90 days with both sides cutting tariffs by 115%.

Both sides vowed to carry on economic and trade negotiations in upcoming weeks.

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