The euro extended four-month highs to the U.S. dollar on Thursday, following a surge in European bond yields on Germany's proposed 500 billion euro ($539.85 billion) infrastructure fund and overhaul in borrowing limits.
The euro dropped on Friday, after a meeting between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump went up in flames, dashing hopes any peace deal could be reached soon in the war with Russia.
The euro rebounded on Monday as hopes for a Ukraine peace deal improved, and interest rate differentials moved against the dollar ahead of a possibly pivotal steer on U.S. economic growth in the February payrolls report late in the week.
The euro is trading in the tightest range since President Donald Trump’s inauguration despite his comments that US trade restrictions are coming to Europe, a sign of market fatigue around tariff threats.
U.S. stocks ended down sharply Monday, with the S&P 500 posting its biggest daily percentage drop since December 18 after U.S. President Donald Trump said 25% tariffs on Canada and Mexico will go into effect on Tuesday,
The chief of the European Union's executive on Tuesday proposed an 800 billion-euro ($841 billion) plan to beef up the defenses of EU nations, aiming to lessen the impact of potential U.S. disengagement and provide Ukraine with military muscle to negotiate with Russia following the freeze of U.