The euro rose in European trade on Monday against a basket of major rivals, heading for the third straight profit in a row against the dollar and trading near three-year highs after the EU suspended its retaliatory tariffs on US products for 90 days.
The EU is currently engaging in intensive trade negotiations with the US, with the European Central Bank monitoring the situation closely to intervene with various monetary tools if negotiations fail.
The Price
The EUR/USD price rose 0.45% today to $1.1409, with a session-low at $1.1315.
The euro rallied 1.45% on Friday against the dollar, hitting three-year highs at $1.1474 as the EU suspended retaliatory tariffs.
The euro surged 3.6 % last week, the third weekly profit in a row on hopes for a trade deal between the EU and the US.
Retaliatory Tariffs Paused
The European Commission paused the first batch of retaliatory tariffs on US goods for 90 days and engaged in negotiations with the US.
It comes after US President Donald Trump suspended global reciprocal tariffs for the same duration.
European Commission President Ursula von der Leyen said the EU wants to give negotiations a real chance but maintained their capability of activating counter measures if talks failed to produce results.
Der Leyen said the EU offered the US “zero for zero” tariff deal to avoid a trade war.
European Economy Stimulus
According to sources, the EU is working on a package of emergency measures to boost parts of the economy that were particularly hit by the threat of US tariffs.
Otherwise, European Central Bank President Christine Lagarde said the ECB is ready to use all its tools to maintain financial stability in times of crisis.
