The euro hovered around $1.04, near two-week highs, as traders weighed President Trump’s trade policies and the potential end of the war in Ukraine.
On February 13th, Trump announced plans for reciprocal tariffs on a country-by-country basis, set to take effect as early as April, though investors remain hopeful that negotiations could prevent their implementation.
Meanwhile, optimism grew over a possible resolution to the Ukraine conflict, with Trump pledging to accelerate peace efforts following discussions with Russian President Putin and Ukrainian President Zelenskyy.
US, Russian, and Ukrainian officials are set to meet at a security conference in Munich for further talks.
However, monetary policy divergence remains a headwind for the euro, as the Federal Reserve maintains a cautious stance on rate cuts amid stronger-than-expected US inflation, while the European Central Bank is expected to continue easing, adding downward pressure on the currency.
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