The euro rose in European trade on Monday against a basket of major rivals, resuming gains against the dollar and moving once more towards a six-week high as the odds of an ECB rate cut in July receded.

The gains come after the Trump-Xi phone call last week, with both sides agreeing to resume trade talks in London later today.

The Price

The euro rose 0.3% against the dollar to $1.1425, with a session-low at $1.1389.

The euro lost 0.45% on Friday on profit-taking away from a six-week high at $1.1495.

Last week, the euro rose 0.2% against the dollar, marking the fourth weekly profit in a row.

European Rates

ECB President Christine Lagarde hinted at the possible end of the current cycle of policy easing, which was in response to a combined shock such as the Covid 19 pandemic, the Ukrainian war, and the energy crisis.

According to a Reuters source, most ECB members now aim at holding interest rates unchanged in July, with the global markets now expecting just an additional 25 basis points of rate cuts by the end of the year.

The odds of a 0.25% ECB rate cut in July now stood below 30%, with traders awaiting more eurozone data and remarks by ECB officials to gather more clues.

London Trade Talks

Later today in London, The US and China will conduct new trade talks following the crucial Trump-Xi trade talk last week, which helped accelerate the momentum of negotiations between both sides.