FX.co ★ Euro Hovers at $1.16

In mid-August, the euro was trading around $1.16, just below its peak from the previous month, as traders assessed various economic, political, and monetary developments. Focus is now shifting to the upcoming meeting on Friday between U.S. President Trump and Russian President Putin, as they seek to resolve the ongoing conflict in Ukraine. Ukrainian President Zelenskyy is not anticipated to be present at this meeting. In the United States, the likelihood of imminent interest rate cuts by the Federal Reserve has increased, spurred by disappointing payroll figures and a weaker ISM Services PMI. On the other side of the Atlantic, the European Central Bank concluded its current cycle of monetary easing in July, having implemented eight rate cuts in the past year, which brought interest rates to their lowest level since November 2022. Nonetheless, some market analysts predict that the ECB might implement another rate cut before the end of the year. Economically, the euro area's GDP experienced a slight increase of 0.1% in Q2, and inflation remained steady at 2% in July. Nonetheless, there are ongoing risks, particularly as the European Union contends with the imposition of 15% tariffs on a majority of its goods exported to the United States.