The euro rebounded on Monday as hopes for a Ukraine peace deal improved, and interest rate differentials moved against the dollar ahead of a possibly pivotal steer on U.S. economic growth in the February payrolls report late in the week.

The European Commission has proposed borrowing up to 150 billion euros to bolster EU defence as a response to Russia's actions and uncertainty over U.S. protection. This move represents a significant shift in Europe's policy,

Germany's conservatives and SPD discuss a coalition to boost Europe's economy with significant borrowing for military and infrastructure. They consider special funds amidst changing U.S. policies and EU summit proposals,

Nur wenige Stunden nachdem US-Präsident Donald Trump die US-Militärhilfe für die Ukraine gestoppt hat, hat die EU einen Plan zur Stärkung der europäischen Verteidigungsausgaben vorgeschlagen. Dieser sieht unter anderem einen Fonds in Höhe von 150 Milliarden Euro vor.

The anti-government protesters, chanting "Resignation" and "No to the Euro", threw red paint, firecrackers and Molotov cocktails at the EU building in Sofia, setting the front door on fire before the police pushed them away.

Euro zone bond yields fell on Tuesday as traders focussed on new U.S. tariffs on Mexico and Canada, a doubling of duties on Chinese goods, and news that President Donald Trump had paused military aid to Ukraine.

Any change in U.S. and EU trade relations could affect euro and U.S. dollar money markets, and therefore, the EUR/USD cross currency basis.

The European Commission proposed on Tuesday new joint European Union borrowing of 150 billion euros ($157.76 billion) to lend to EU governments for defence as part of an overall 800 billion financing effort to boost Europe's defence capabilities.