EUR/USD rises on Trump-Putin peace talks and softer US tariff expectations

European markets closed higher as EUR/USD gained 0.4% to 1.0920, driven by optimism surrounding Friday's Trump-Putin meeting in Alaska and expectations of reduced tariff impacts. President Trump's diplomatic outreach to European leaders and Ukraine's Zelenskiy ahead of the summit has boosted risk appetite, weakening the safe-haven dollar. The euro strengthened against major peers as investors anticipate potential de-escalation in geopolitical tensions and more favorable trade conditions. Market participants are positioning for a possible breakthrough in peace negotiations, which could further support European assets and the common currency. Technical indicators show EUR/USD breaking above the 1.0900 resistance level, with next target at 1.0950. The positive sentiment in European equities, particularly in export-heavy sectors, reinforces the euro's strength as traders price in reduced trade friction and improved economic prospects for the eurozone.