EUR/USD experiences a slight increase late in the North American session on Monday as the Greenback pulls back from the highs seen last week, coinciding with a de-escalation in the US-China trade war ahead of the upcoming summit between Donald Trump and Xi Jinping in South Korea. The currency pair is currently trading at 1.1643, reflecting an increase of 0.15%.
The EUR/USD is currently trading at 1.1643, buoyed by enhanced risk sentiment following the US–China discussions in Malaysia. Negotiators established a framework for a trade truce addressing tariffs, rare earths, and fentanyl. The US Dollar experiences a decline as market participants incorporate a 97% probability of a 25 basis points Federal Reserve rate cut during this week’s meeting.
> The Euro appreciates as the Dollar pulls back from its weekly peaks; attention shifts to the upcoming Trump–Xi summit and the FOMC meeting : Discussions in Malaysia involving US and Chinese officials have laid the groundwork for the upcoming Trump–Xi Jinping meeting on Thursday, following trade negotiators’ dialogue concerning tariffs, shipping fees, fentanyl, and export controls on rare earths. The news led to an enhancement in risk appetite, providing a favorable condition for the shared currency, which had faced pressure as the US Dollar strengthened. In light of this, the EUR/USD continues to trade within established ranges as market participants anticipate the Federal Reserve’s monetary policy decision in the upcoming two days. Traders are anticipating a 97% likelihood that the Federal Reserve will implement a 25 basis point rate cut at the upcoming meeting. A survey indicated that while companies in the Eurozone anticipate an economic improvement next year, the current situation is “assessed as slightly worse.”
Latest FX Rate Trends : EUR/USD hovers near 1.1640 as the Dollar experiences a decline
- The US Dollar Index, which monitors the value of the dollar relative to a selection of competing currencies, has increased by 0.03% to 98.94, thereby limiting the gains of the EUR/USD pair.
- US President Donald Trump arrived in Asia, stating that the US and China are poised to “come away” with a trade deal. He is anticipated to engage with his counterpart Xi Jinping this week in South Korea.
- US Treasury Secretary Scott Bessent stated on Sunday that US and Chinese officials have established a “positive framework” for the upcoming Trump–Xi summit later this week. It was also indicated that President Trump’s threat to impose 100% tariffs on Chinese goods is no longer being contemplated.
- The German Ifo Business Climate Index in October increased from 87.7 to 88.4, surpassing expectations of 87.8. Expectations increased to 91.6 from the prior 89.8, whereas Current Conditions decreased to 85.3 from 85.7, falling short of forecasts that anticipated a decline to 85.5. The survey indicated that “Companies remain hopeful that the economy will pick up in the coming year.” However, the current business situation has been evaluated as marginally less favorable.