Euro Rises 0.3% to $1.1254 After Fed Chair Warsh’s Remarks Weaken Dollar

The move looks more like a positioning correction than a change in the underlying rate story: the euro is recovering from a 17-month low, not reversing a trend, and options sentiment improving while still negative suggests traders are trimming bearish bets rather than turning constructive. That distinction matters because the same US-European rate gap that pressured the euro has not gone away. What to watch is whether Warsh's remarks translate into a genuine repricing of the Fed path, or fade once the next round of rate signals arrives.