FX.co ★ Euro Cuts Losses to Stabilize at $1.13

The euro managed to recover from earlier declines, stabilizing around $1.13, as investors absorbed recent monetary policy announcements and awaited significant updates in international trade. The U.S. Federal Reserve maintained its interest rates as anticipated, issuing a warning that President Donald Trump’s tariffs have the potential to raise prices, impede economic growth, and heighten unemployment if they persist. On the other hand, the Bank of England lowered its base rate by 25 basis points to 4.25%—a level not seen in two years—following a narrowly unanimous decision, driven by enduring domestic challenges and increasing global trade tensions. In contrast, central banks in Sweden and Norway decided to keep their interest rates steady, despite mounting concerns regarding the economic outlook amidst intensifying trade uncertainty. In a related development, Trump announced the release of a significant trade agreement between the U.S. and the UK, while high-stakes negotiations between the U.S. and China are scheduled to recommence this weekend.