The euro rose above $1.04, reaching its highest point in nearly two weeks, driven by growing optimism over a potential resolution to the Ukraine conflict.
Euro climbs on Ukraine peace hopes
President Donald Trump announced that the US and Russia would begin immediate negotiations after his conversation with President Putin, with plans to meet the two leaders in Saudi Arabia for further talks.
However, the euro continues to face pressure from the ongoing monetary policy divergence between the Federal Reserve and the European Central Bank. The Fed is cautious about rate cuts, while the ECB is expected to continue easing its policy.
Trump’s trade policies remain a key concern, with the European Union preparing to retaliate against US tariffs on European steel and aluminum.
EU threatens quick retaliation over US tariffs
European Commission President Ursula von der Leyen criticized the tariffs as "unjustified" and vowed to implement strong countermeasures. At the same time, German Chancellor Olaf Scholz warned that Europe would act "within an hour" if the tariffs were enforced.
