Euro Gains on Ukraine Peace Efforts

The euro rose to around $1.04, rebounding from three consecutive sessions of losses, as Europe took center stage in a renewed diplomatic push for peace in Ukraine.

Last week, a tense confrontation unfolded between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy during a meeting at the Oval Office.

However, Zelenskyy received a much warmer reception in the UK, where Prime Minister Keir Starmer revealed that European leaders had agreed to craft a peace proposal for presentation to the U.S. This surge of European momentum on the Ukraine peace initiative gave the euro a boost. Meanwhile, investors are closely watching this week's European Central Bank policy meeting, with expectations of a 25 bps rate cut, following a similar reduction in January 2025.