Risk Sentiment Stabilizes as Trade Deal Uncertainty Lifts EUR/USD Outlook

European markets are set to open on a steadier footing as risk appetite cautiously recovers following mixed signals on US trade deal progress. The EUR/USD pair is benefiting from a calmer tone after markets initially whipsawed on conflicting headlines regarding trade negotiations, with traders increasingly discounting aggressive tariff rhetoric from the Trump administration as a recurring pattern. The USD is facing mild selling pressure as market participants adopt a wait-and-see approach heading into the weekend, with safe-haven flows easing across JPY and CHF pairs. Broader risk-sensitive currencies including AUD and NZD are finding support as equity futures point to a positive European open. The key question remains whether concrete trade deal details will emerge or if markets will continue to navigate headline-driven volatility. Traders should monitor USD positioning closely, as repeated cycles of escalation followed by de-escalation are gradually eroding dollar credibility on trade threats. Near-term price action will likely remain range-bound until definitive clarity emerges on trade policy direction.