The US remains optimistic about a resolution of its trade dispute with the European Union (EU) over tariffs on steel and aluminum before the end of October, Reuters reported on Wednesday, citing a source familiar with the discussions.

The source said, “we’re hopeful we can reach an agreement by the end of the month.”

This comes after US Trade Representative Katherine Tai met on Tuesday with EU trade chief Valdis Dombrovskis.

Market reaction

EUR/USD is trading virtually unchanged on the day, just below 1.1600, consolidating the previous surge triggered by the broad sell-off in the US dollar.