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German Chancellor Merz says they are not prepared to accept a deterioration of the trade deal, with reference to the EU-US agreement. Adds, the basis for ratifying that remains in place.

Chancellor Merz's comments reflect Germany's firm stance on maintaining the existing trade deal with the US, implying potential resistance to any negotiations that may lead to a deterioration of terms.

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Context

This positions Germany within a broader geopolitical context, suggesting stability in EU-US trade relations, which could bolster the EUR against the USD if perceived positively. However, markets will be watching for reaction from US officials to gauge possible shifts in trade dynamics moving forward.

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