European leaders, led by Britain and France, are taking the initiative in reviving peace negotiations for Ukraine, following a period of diplomatic tension between Washington and Kyiv.
This renewed push comes as UK Prime Minister Keir Starmer announced that European nations are working on a peace proposal to present to the United States.
The latest diplomatic efforts follow a tense meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy at the White House. In response, Zelenskiy received a strong show of support from European leaders, particularly in London, where discussions focused on potential pathways to peace.
These geopolitical developments had an immediate impact on financial markets. The euro rebounded from a two-and-a-half-week low against the US dollar, rising 0.4% to $1.0415, while the British pound also gained 0.2% to $1.2602. Analysts attributed the currency movement to growing confidence in Europe’s diplomatic leadership on the Ukraine issue.
Meanwhile, cryptocurrency markets experienced a significant boost after President Trump announced plans to include select digital assets in a new US strategic cryptocurrency reserve. Bitcoin surged nearly 11% to approach $95,000, while other cryptocurrencies, such as Ether and Solana, also saw gains.
Beyond Ukraine, economic uncertainty remains a dominant theme in global markets. The Canadian dollar and Mexican peso strengthened after US officials suggested that planned 25% tariffs on imports from these countries might be revised downward. Meanwhile, high interest rates and ongoing debates over US immigration policy have dampened investment in home renovations, adding to concerns in the American housing market.
With input from Reuters and the Financial Times.
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