The euro rose in European trade on Monday against a basket of major rivals, extending gains for the second straight session against the dollar and hitting a four-week high as US President Donald Trump gave the EU another chance to reach a trade deal.

Recent eurozone inflation data led to divisions between European Central Bank policymakers on the decision to cut rates in June, with investors awaiting more data and a speech by ECB President Lagarde later today to gather more clues.

The Price

The EUR/USD price rose 0.5% to $1.1419, the highest since April 29, with a session-low at $1.1359.

The euro rose 0.7% on Friday against the dollar, the fourth profit in five days amid a strong sell wave.

The euro rallied 1.8% last week against the dollar, the first weekly profit in five weeks on concerns about US financial stability.

Trade Developments

US President Donald Trump gave the EU an extended truce towards July 9 to reach a trade deal, backing off from an earlier threat to raise tariffs by 50% starting June 1.

Trump announced his decision to the journalists on Sunday after a phone call with the European Commission President Ursula von der Leyen, who asked for more time to reach an agreement.

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%.

Now investors await a batch of important Eurozone data and speeches by ECB officials this week.

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