EUR/USD gains on trade optimism amid improving market sentiment

EUR/USD is experiencing upward pressure as renewed trade deal optimism boosts risk appetite and supports the euro against the dollar. The improved sentiment stems from positive developments in international trade negotiations, reducing concerns about global economic headwinds that had previously weighed on the eurozone economy. The euro's strength is also evident in cross pairs, with EUR/GBP and EUR/CHF showing corresponding gains as traders position for potential economic benefits from enhanced trade flows. Technical analysis suggests the pair is approaching key resistance levels that could determine the next directional move. The US Dollar Index has shown signs of weakness as safe-haven demand diminishes amid the improving trade outlook. For traders, this shift in sentiment presents opportunities in euro-positive strategies, though caution is warranted as trade negotiations can quickly reverse course. Near-term targets include testing recent highs if the optimistic momentum continues.