FX.co ★ Euro at $1.17

The euro is hovering around $1.17, maintaining levels not seen since 2021, as market participants prioritize developments in trade negotiations. There are indications that the United States and the European Union are edging closer to a trade agreement. According to the EU's trade commissioner, substantial progress has been made toward a framework arrangement, and an accord might be finalized within a few days. This potential agreement is projected to establish a minimum tariff of 10%, but it may include exemptions for significant products like Airbus aircraft. This year, the euro has strengthened by approximately 13% against the U.S. dollar, bolstered by the dollar's widespread weakness linked to apprehensions over President Trump's tariffs and increasing American debt. Investor optimism is further fueled by revived expectations of economic recovery, as evidenced by Germany's move toward heightened fiscal spending. Meanwhile, in monetary policy circles, the European Central Bank is expected to maintain its current interest rates this month, although markets are preparing for at least one more rate cut before the year concludes.