The euro staged a remarkable turnaround today, erasing early session losses to push into positive territory by mid-session. Meanwhile, the dollar index retreated from its highs as market sentiment shifted. The catalyst? Fresh tariff threats tied to geopolitical expansion rhetoric sent shockwaves through currency markets. EUR/USD volatility spiked as traders reassessed risk positioning. The greenback's weakness reflects growing concerns about trade policy uncertainty—a pattern increasingly familiar to forex traders monitoring macro headwinds. Market participants are now watching whether this dollar pullback holds or if we see renewed strength ahead.