The euro witnessed an increase on Thursday against a basket of global currencies, continuing its gains for the second day in a row against the US dollar, approaching recording the highest level in a week, as the euro rose against the dollar by 0.2% to ($1.0690), from the opening price of trading at ($1.0673). On Wednesday, the euro achieved an increase of 0.5% against the dollar, the first gain in the last seven days, after recording the lowest level in five months at $1.0601 the previous day.

Despite the current improvement in euro prices, negative pressures remain, especially potential cuts by the European Central Bank. These cuts are likely to occur sooner rather than later, especially with inflation in Europe approaching its medium-term target. At 2%...

Global markets are currently dominated by a wave of positive risk sentiment, amid the apparent slowdown in the yield on ten-year US Treasury bonds, in addition to the decline in fears of worsening geopolitical tensions prevailing in the Middle East region.

  The interest rate gap between Europe and the United States is currently at 100 basis points, the smallest gap since May 2022, and it is expected to expand to 125 basis points next June in favor of US interest rates. As the possibility of new evidence emerging about a reduction in European interest rates in... June will halt the current recovery path, which could lead to the euro/dollar pair falling below the $1.06 barrier.