The euro edged higher toward $1.05, supported by a softer dollar following Donald Trump’s announcement of hedge fund manager Scott Bessent as his Treasury Secretary nominee.
Euro rises after disappointing week
The move offered investors some reassurance, as Bessent is expected to focus on political stability and mitigate concerns over sweeping tariffs. However, the euro remains near two-year lows amid persistent worries about downside risks to the Eurozone economy, including uncertainties surrounding Trump’s second term and the ongoing war in Ukraine.
Market focuses on central banks
Markets have fully priced in a 25-basis-point rate cut by the ECB next month, with the likelihood of a larger 50-basis-point reduction rising to 58%. Attention now shifts to preliminary inflation data for the Euro Area, due this week, which could provide further insights into the ECB’s monetary policy decisions.
