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 euro strengthened following improved hopes for a Ukraine peace deal and shifts in economic growth indicators influencing the dollar. European leaders are pushing for peace in Ukraine, while the euro benefits from potential fiscal boosts and a narrowing inflation gap.

The U.S. Dollar retreated, and the euro rose on Monday after Europe pushed forward for a peace deal between Ukraine and Russia. The greenback was last down 0.99

Donald Trump’s abrupt decision to pause military aid to Ukraine forces Europe to step in with hopes to plug the gap. Brussels has the financial means, but not all the military equipment necessary to help Kyiv mount an effective defence.

If sanctions were going to have an effect on global reserve holdings, we presumably would have seen it by now.

Tánaiste Simon Harris told RTÉ’s This Week programme that he plans to bring a proposal for €100 million in non-lethal military assistance for Ukraine.

Spain will provide Ukraine with a new military aid package worth 1 billion euros ($1.05 billion) this year, Prime Minister Pedro Sanchez said on Monday in Kyiv during an international meeting held on the third anniversary of Russia's invasion.

NATO membership for Ukraine is becoming increasingly elusive. The previous U.S. administration has been silently opposing extending a NATO invitation to Ukraine. Such a policy by Ukraine's main backer has raised eyebrows in the past.