Trump lifts mood but tech shares under pressure
President Trump's renewed optimism on a Ukraine deal lifts European equities and Dow futures, but tech shares face selling pressure while the dollar weakens broadly.
President Donald Trump has once again signaled that a deal to end the war in Ukraine is close, lifting risk sentiment in European trading. European equity indices are mostly higher and Dow futures are up 0.8%, but the tech sector is under noticeable selling pressure. The US dollar is declining broadly, with EUR/USD rising 0.4% to 1.1640 and USD/CHF falling 0.5% to 0.7875. Oil prices are also under pressure, with WTI crude dropping nearly 4% to $92.50.
For currency traders, the dollar's weakness reflects a shift in risk appetite tied to geopolitical headlines. The renewed optimism reduces safe-haven demand for the greenback, while the euro and Swiss franc benefit from improved sentiment. However, the divergence between broader equities and tech shares suggests that market participants are still cautious about valuations in the tech sector. This could limit the dollar's downside if risk-off sentiment returns. For real-time pricing on these moves, check NowPrice's forex page.
Looking ahead, traders will monitor any further comments from Trump or Ukrainian officials regarding the peace process. The US dollar's direction will also depend on upcoming economic data, including jobless claims and ISM services PMI later this week. A break above 1.1650 in EUR/USD could signal further upside, while a failure to hold 1.1600 might bring the pair back into range. Oil traders will watch for any supply-side developments or demand concerns that could exacerbate the current sell-off.