FX.co ★ Euro Nears 1-Month Low

The euro dipped below the $1.17 threshold, reaching its lowest point since December 9, and is on track for its steepest decline since October, following the US's apprehension of Venezuelan President Nicolás Maduro. President Donald Trump announced that Washington intends to temporarily oversee Venezuela and introduce US energy companies into the nation, which boasts the world's largest oil reserves. This development has increased demand for the US dollar amid rising geopolitical tensions. Meanwhile, market analysts are focusing on crucial economic data expected this week, such as preliminary inflation figures across Europe and the US job report, to gauge the future direction of monetary policy. The European Central Bank (ECB) has signaled that interest rates are likely to remain stable, pointing to consistent economic growth and inflation rates near the target. In contrast, in the US, attention is on President Trump’s anticipated nomination of a new Federal Reserve chair in May, which may suggest a potential shift toward a more dovish monetary stance. Last year, the euro achieved an impressive 13.5% appreciation against the dollar, marking its strongest annual performance in eight years.