FX.co ★ Euro Little Changed at $1.13

The euro remained stable near $1.13, marginally under the nearly three-year peak it achieved in April, as it continues to gain from general weakness in the dollar. Market participants are intently following the trade war developments, with particular focus on negotiations between the United States and various Asian nations, while discussions with China seem to be at a standstill. In Germany, Friedrich Merz encountered an unforeseen hurdle when he was not elected as German Chancellor in the initial round of parliamentary voting. The subsequent steps remain unclear, potentially postponing Merz's inauguration. His coalition, led by the CDU in partnership with the center-left Social Democrats, alongside their plans to increase public spending, has been reinforcing confidence in Germany's economic recovery. Concerning monetary policy, the European Central Bank is anticipated to lower interest rates further in June, while the Federal Reserve is largely expected to maintain its current rates this month.