The biggest three-day rally in the euro in over two years has sent analysts scrambling to rewrite their forecasts for the currency, as a surge in European spending and signs of a weakening U.S. economy dampens chatter about a fall to $1.

Germany's plans to go on its biggest public spending spree in 35 years will likely lead to higher borrowing costs across the euro zone – and that's a good thing.

The euro ascended to four-month highs on Wednesday against the U.S. dollar, as Europe's growth prospects improved after Germany's proposed 500 billion euro ($531 billion) infrastructure fund, potentially offsetting global trade tensions.

The combination of continued growth concerns in the US and the fiscal/defense initiatives in Europe saw the dollar fall every day last week.

"I am very concerned about the European economy," European Central Bank policymaker Mário Centeno told CNBC's "Squawk Box Europe" on Friday. The ECB on Thursday took down its gross domestic product expectations for the euro area.

It remains to be seen how far President Trump’s embrace of Russia and abandonment of traditional allies will go. But “the West” may be gone.

As Germany gets ready to borrow and spend big, there’s little to fear from a selloff that shows Europe is finally helping itself.

The euro hit a fresh year-to-date high versus the greenback amid renewed bets that a ramp-up in European defense spending will provide a much-needed boost to the region’s economy.

Senior German lawmakers sound alarm bells that a sudden cutoff could leave Europe dangerously exposed. BERLIN — The Bundestag’s top intelligence experts are calling for a European spy network, warning that Europe can’t rely on intelligence from the United States amid growing uncertainty.

The euro extended its gains and was last up 0.28% at $1.082, having traded at $1.0797 earlier, while government bond yields edged up. Germany's two-year bond yield traded at 2.25%, versus 2.22% just before the decision, while Italian bond yields edged up. European stocks were last down 0.6%.

EUROPEAN commercial property deals rebounded in 2024 after two years of contraction, with MSCI data showing a busy fourth quarter with a transaction value totalling 55.6 billion euros (S$80.3 billion),