FX.co ★ Euro at Over 3-Year High

The euro recently approached the $1.14 threshold, marking its highest point since January 2022, following a 3.6% gain over the past week. This upward movement has been fueled by escalating global trade tensions and increasing uncertainty surrounding U.S. tariff policies. These factors have reignited recession concerns and reduced investor confidence in U.S. assets. Over the weekend, President Trump temporarily exempted smartphones and computers imported from China from tariffs, while also indicating that new tariffs on semiconductors would be unveiled later this week. The final decision on tariffs for phones remains unresolved. These developments occur in the context of ongoing market volatility and conflicting messages regarding trade policies. In the coming days, the European Central Bank is set to conduct its policy meeting on Thursday, with a widely anticipated 25 basis point interest rate cut. Investors will closely scrutinize statements from ECB officials concerning the effects of trade tensions on the Eurozone economy and the prospective trajectory of interest rates.