On Friday, the euro continued to climb, crossing the $1.14 mark for the first time since late January 2022. It was poised to advance by over 3.5% on the week, against the backdrop of a turbulent weekend marked by escalating global trade tensions, which rekindled fears of a deep recession and shook investor confidence in US assets.

Earlier last week, President Donald Trump announced a 90-day freeze on several planned US tariff hikes to allow for trade negotiations. Washington, however, simultaneously raised tariffs on Chinese products to 145%.

In retaliation, Beijing imposed a new 125% tax on US products, while the EU suspended its own planned tariffs on US goods. French President Emmanuel Macron warned that Trump's decision was only a "fragile pause", stressing that business confidence would remain under pressure.

At the same time, the EU reaffirmed that it would not compromise on its digital regulatory framework as part of a possible trade agreement with the USA.