The euro rose in European trade on Tuesday on track for the third straight session against the US dollar, and about to hit a four-week high amid concerns about US financial stability.

Recent bullish remarks by European Central Bank President Christine Lagarde provided more positive momentum for the euro, and underscored investor confidence in the EU.

The Price

The EUR/USD price rose 0.25% to $1.1407, with a session-low at $1.1381.

The pair rose 0.2% on Monday, the second profit in a row, hitting a four-week high at $1.1419, as Trump delayed imposing 50% tariffs on the EU until July 9.

Lagarde

ECB President Christine Lagarde said the euro could be an alternative to the dollar, which would bring about great benefits to the 20-country bloc if governments managed to bolster its financial and security structures.

Lagarde said that ongoing changes open the door to what is called euros global moment, but itll have to earn it.

She said that boosting the euros global role would simultaneously require a boost to European military power to underpin the continents ability to support its partners and strategic alliances.

Lagarde added that official investors dont only look for economic stability but also for geopolitical guarantees, and they tend to invest in assets of countries that are considered highly trusted security partners.

She called for making the euro the favored currency in pricing international trade bills, through accelerating new trade deals and boosting liquidity deals with the ECB.

European Rates

Recent eurozone data showed inflation rose past estimates in April, renewing pressures on the European Central Banks policymakers.

Following the data, the odds of an ECB rate cut in June fell from 60% to 50%.

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