The euro is on track for its best weekly performance since 2009, driven by a weakening US dollar and anticipation of stronger economic growth in the Eurozone. The currency has risen more than 4.5% against the dollar this week, reaching its highest level since early November. This surge in the euro comes as investors bet on Germany's fiscal stimulus to fuel an economic recovery. The stimulus plan, announced by Germany's Chancellor-in-waiting Friedrich Merz, aims to fund investments in defense and infrastructure, signaling a shift in European leaders' approach to regional security and support for Ukraine. The Eurozone economy grew by 0.2% at the end of last year, twice the pace initially estimated. European defense stocks have seen significant gains, with companies like Rheinmetall, Leonardo, and Thales experiencing sharp increases in share prices. Rheinmetall rose by 15%, Thales by 16%, and Dassault Aviation by 19%. This rise is attributed to the EU's plan to unlock nearly €800 billion for defense spending, reflecting a broader trend of increased military expenditure amid concerns over Donald Trump's commitment to European security. The market's reaction to these developments has been positive, with European indices rallying and investors pouring money into European equities at a rate not seen in nearly a decade. This enthusiasm is fueled by expectations of increased spending on infrastructure and defense across the continent. The European Central Bank reduced interest rates to 2.5% on Thursday.