BUZZ-COMMENT-EUR/USD to sink if EU fails to do a deal with Trump
Feb 4 (Reuters) - EUR/USD could tumble towards 0.95 if the European Union is unable to agree a deal with Donald Trump to pause tariffs on EU goods exports to the United States which the president is expected to announce within weeks, if not days.
Trump has the EU in his crosshairs after announcing 25% tariffs on Mexico and Canada - which have been paused for 30 days - and a new 10% tariff on Chinese goods exports to the United States, which came into effect at 0501 GMT.
The EU has consistently exported more goods to the United States than it has imported and the U.S. goods trade deficit stood at 155.8 billion euros in 2023, according to Eurostat data.
Potentially losing a chunk of those exports would negatively impact the EU economy, and could also hurt the euro.
EUR/USD most recently threatened 0.95 in September 2022 (a month in which GBP/USD sank to a historic low of 1.0327 courtesy of "Trussonomics").
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