EUR/USD holds onto gains near the key level of 1.0500 in Tuesday’s European session. The major currency pair remains firm as European leaders, including Ukrainian President Volodymyr Zelenskyy, agreed to structure a peace plan to end the three-year-long war in Ukraine. Europe’s readiness to stop the massacre in Ukraine has improved the Euro’s (EUR) appeal, assuming that a truce between Russia and Kyiv would restore the fractured supply chain of the Eurozone.
This week, the major trigger for the Euro is the European Central Bank’s (ECB) monetary policy decision, which is scheduled for Thursday.
According to the February 19-27 Reuters poll, the ECB will cut its Deposit Facility Rate by 25 basis points (bps) to 2.5%. This would be the fifth interest rate cut by the ECB in a row, the sixth since the central bank started its easing cycle in June 2024. Dovish votes for the ECB’s interest rate decision were prompted by fears that United States (US) President Donald Trump’s tariff agenda will damage the Eurozone economic growth.
