The EUR traded around USD 1.045 as traders assessed the impact of rising defense spending, US tariffs, and geopolitical tensions. European governments met in Paris to discuss support strategies for Ukraine, but no concrete measures were agreed upon. Trump’s planned 25% tariffs on automobiles, semiconductors, and pharmaceuticals could harm European carmakers. The ECB is expected to cut its deposit rate by 25 bps at the next three meetings, with rates potentially falling below 2% by 2026.