The dollar edged higher against the euro on Thursday following progress in U.S. trade talks with key partners, but was mixed versus the yen, which got a lift from expectations for higher rates while political risks weigh.

European carbon is entering into a very dynamic phase given the concurrence of events unfolding that are expected to provide favorable supply-demand dynamics.

The ECB cut interest rates eight times between June 2024 and June 2025, taking the deposit rate to 2.0% currently. Eurozone money markets only fully price in one more rate cut this year and not until December, LSEG data show. For now, the ECB "needs to keep some rate cut powder dry, just in case things turn sour," Held said.

Economists had already downgraded growth for the European Union, and the new duties would hit industries there especially hard. Companies are looking for ways to blunt the impact.

The National Bank of Ukraine (NBU) has worsened the inflation forecast to 9.7% in 2025 and 6.6% in 2026, expecting a return to the 5% target only in 2027 due to higher price pressure, the consequences of the war,

Continued uncertainty surrounding U.S. tariff policy means the European Central Bank can easily justify keeping interest rates on hold this week, but the euro's surprising retreat this month gives the policymakers additional cover to stand pat.