Ella 
EUR/USD retreated to lower levels on Thursday, down more than two-thirds of a percentage point from the day’s opening quote, after the U.S. dollar (USD) received a broad market boost following the initial announcement of an imminent trade deal between the United States and the United Kingdom. Europe appears to still be strained with the Trump administration, with White House officials continuing to warn the entire European Union continent “not to retaliate” against U.S. import taxes.
The U.S.-UK trade deal will allow the UK to avoid high “reciprocal” tariffs that were set to resume on July 9 after President Trump temporarily delayed his own “Liberation Day” tariffs. However, a broad 10% tariff is still planned for all goods imported from the UK to the United States, which could quickly dampen market sentiment. The Trump administration has fully suspended tariffs on important imports such as refined ethanol. Data shows that the United States has not imported refined ethanol from the UK in at least 15 years.
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