The euro rose to $1.177, remaining relatively close to its highest level since August 2021 amid signs of an imminent trade agreement between the US and the EU. Reports indicated that EU diplomats were set to agree to US tariffs on the EU to 15%. If confirmed, the move would prevent the US from setting tariffs on 30% on EU goods, as previously threatened, to limit damages of the trade war that magnify the bloc's growth threats. Headwinds to European economic activity stemmed from US trade war had driven markets to consider that the ECB could make dovish adjustments to its outlook amid the risk that inflation could undershoot its target. On Thursday, the ECB is widely expected to keep interest rates unchanged after eight consecutive cuts, with rate futures pricing another 25bps cut to be delivered by the end of the year. Conversely, two 25bps rate cuts are priced by the Fed this year.