EUR/USD gaps higher on EU-US trade deal in Asian session

EUR/USD opened with a small gap higher during Monday's Asian trading session, climbing 0.15% (16 pips) to 1.0865 following news of a breakthrough in EU-US trade negotiations. The currency pair benefited from improved risk sentiment after weekend reports confirmed progress on reducing tariffs on European exports, particularly in the automotive and agricultural sectors. The euro's gains were limited by thin liquidity typical of Asian hours, with major European and US markets closed. Technical indicators show the pair testing resistance at 1.0875, the previous week's high, while support remains firm at 1.0845. The modest gap suggests traders are cautiously optimistic but awaiting confirmation from European trading. With no major economic releases scheduled for Monday, the focus remains on trade headlines and whether the euro can sustain its gains when London markets open. A decisive break above 1.0875 could target the psychological 1.0900 level.