The Euro could extend gains if Ukraine peace talks deliver a breakthrough, though negotiations may continue into next week. EUR/USD’s return to 1.16 opens room toward 1.17–1.18, ING's FX analyst Francesco Pesole notes.

Euro eyes further upside on Ukraine peace hopes

"The Euro retains some upward potential if a peace deal in Ukraine is agreed. The latest indications are that while some progress is being made, negotiations may drag on into next week."

"For now, EUR/USD bulls like us should be content with the return to 1.16. We think 1.17 can be reached with the pair's short-term undervaluation being trimmed, and our 1.18 year-end target with seasonal factors and some soft US data in December."

"Today, the ECB publishes the minutes of its 30 October rate decision. We don’t expect it to be a meaningful release for markets, as the Governing Council’s neutral view has been widely confirmed in post-meeting speeches."