EUR/USD recovers on Trump-Putin peace talk optimism

EUR/USD is showing signs of recovery as markets react positively to reported peace talk developments between Trump and Putin, reducing geopolitical tensions that had previously weighed on the euro. The pair has pared some recent losses as traders reassess risk sentiment amid hopes for de-escalation in regional conflicts. The optimism surrounding potential diplomatic breakthroughs is providing support for risk-sensitive currencies, with the euro benefiting from reduced safe-haven demand for the US dollar. Technical analysis suggests the pair is attempting to establish a base after recent declines, though significant resistance levels remain overhead. The geopolitical developments add a new dimension to EUR/USD dynamics, potentially offsetting some negative fundamental pressures on the euro. For traders, the peace talk narrative introduces additional volatility and uncertainty, requiring careful monitoring of both diplomatic developments and technical levels. Near-term direction will likely depend on concrete progress in negotiations and broader risk sentiment shifts.