FX.co ★ Euro Rises Above $1.14 Amid Trade Talks, ECB Signals Shift

The euro has risen above the $1.14 mark, moving closer to the recent six-week high of $1.149 achieved on June 5th. This uptick comes as investors monitor the progress of US-China trade discussions and anticipate significant addresses from European Central Bank (ECB) officials to gain insights into the institution's future policy direction. Today, high-level negotiators from the US and China are convening in London, building on the preliminary accord reached last month in Geneva. These talks are anticipated to focus primarily on rare-earth minerals and cutting-edge technology. Meanwhile, on the monetary policy front, the ECB reduced interest rates by 25 basis points last week, reducing borrowing costs to their lowest levels since November 2022. Additionally, the ECB revised its inflation projections downward for 2025 and 2026. Despite these changes, the bank has also suggested that it might be approaching the conclusion of its current cycle of monetary easing, which contrasts with earlier expectations.