USTR Greer's commitment to capped tariff deals calms trade fears, boosting the dollar and risk assets.
SPX rose 1.2% to 6050 as Greer's commitment to tariff deal caps eased trade war fears, lifting risk appetite and supporting equities.
The reaffirmation of capped tariff deals reduced the likelihood of new trade disruptions, which benefits U.S. companies reliant on stable global trade. The market priced in lower policy risk.
Short-term momentum could persist if further trade clarity emerges, but profit-taking may emerge near resistance at 6150.
DXY gained 0.3% to 97.80 as Greer's firm stance on tariff caps reduced trade uncertainty, supporting the dollar against major peers.
It supports the dollar by affirming trade policy stability, reducing the risk premium that had been priced in for tariff escalation. DXY may test 98.50 if hawkish Fed bets continue.
The move is likely short-term until markets reassess inflation and Fed path. If U.S. data weakens, DXY could retreat toward 97.00.
EUR/USD fell 0.4% to 1.1850 as the dollar strengthened across the board after Greer's comments lowered trade uncertainty, making the euro less attractive comparatively.
The dollar gained on Greer's trade remarks, reducing demand for euros. As EU-U.S. trade remains stable, the catalyst favored the dollar.
The pair could test 1.1820 support if dollar momentum holds. Upside risks emerge if U.S. data disappoints or ECB rhetoric turns hawkish.
US10Y yields rose 2 bps to 4.35% as trade stability reduced demand for safe-haven Treasuries, with funds rotating into equities.
Greer's trade reassurance reduced demand for safe assets, causing bond prices to fall and yields to rise. The market sees less need for haven flows.
If upcoming inflation data comes in hot, yields could push toward 4.50%. Conversely, a risk-off event would send yields back down.
U.S. Trade Representative Greer said existing trade agreements that cap U.S. tariffs will be honored, signaling stability in trade policy. The statement eased concerns about escalating trade tensions, lifting risk appetite and supporting the dollar. Markets now discount further tariff volatility, focusing on implementation of existing deals.
Greer said existing agreements that cap U.S. tariffs on certain economies are binding, using the phrase 'Deal's a deal' to emphasize that the U.S. will not renege on these commitments.
It marks a shift toward trade policy predictability, as the Trump administration has previously threatened to withdraw from or renegotiate agreements. Markets view the commitment as reducing the risk of new tariff escalations.
The dollar strengthened, U.S. stock futures rose, and bond yields edged up, reflecting increased risk appetite and reduced demand for haven assets.