EU Commission spokesperson says "we can only reiterate that the US fully honours the EU-US trade deal"; ready to respond proportionately to US deal breach

The EU's reiteration of the US's commitment to the trade deal indicates a desire to maintain a cooperative stance amid potential tensions. However, their readiness to respond proportionately to any breach suggests a preparedness for escalation, which could impact market sentiment, particularly in sectors sensitive to trade relationships. Keep an eye on affected assets like EUR/USD and equities with significant export exposure to the US.