Reports of EU-US trade deal

Media reports suggest that the EU and US are approaching an agreement which would see a baseline tariff of 15% covering most products including vehicles. If confirmed (and of course President Trump could yet throw a spanner in the works) this would be comparable to the US-Japan agreement announced earlier today. It would also be welcomed by financial markets as the threat of a 20% or 30% tariff and of an escalating trade war would have been averted. Indeed, following these reports, interest rate expectations have edged up by a few basis points in the euro-zone and the euro has strengthened by about 0.2% against the US dollar.