- EUR/USD hits its highest degree since September 2021 and extends its rally for a sixth straight session.
- ECB’s De Guindos flags data-driven method, warns of commerce and geopolitical dangers to Eurozone outlook.
- US GDP revised decrease to -0.5% in Q1, the primary contraction in three years. Jobless Claims ease however stay elevated.
The Euro (EUR) extends its profitable streak in opposition to the US Greenback (USD) for a sixth consecutive day on Thursday, with EUR/USD hovering previous the 1.1700 deal with for the primary time since September 2021, marking a virtually four-year excessive.
On the time of writing, EUR/USD is buying and selling close to 1.1700 in the course of the American buying and selling hours. The foremost driver behind the EUR/USD rally is the mixture of strong Euro demand and sharp US Greenback weak spot, fueled by renewed criticism of Fed Chair Jerome Powell from US President Donald Trump. Talking at a press convention following the NATO Summit in The Hague, Trump known as Powell “horrible,” accused him of being “very political,” and reiterated his demand for speedy price cuts. He additionally revealed he’s contemplating “three or 4” potential replacements for Powell, whose time period ends in Might 2026. The feedback have intensified issues over potential political interference in US financial coverage, eroding confidence within the Fed’s independence, and including to the bearish stress on the Buck.
European Central Financial institution (ECB) Vice President Luis de Guindos mentioned on Thursday that future coverage choices will probably be guided by evolving commerce dynamics, holding the door open for extra price cuts.
Talking on the Deutsche Financial institution Discussion board, De Guindos flagged rising world commerce tensions and geopolitical dangers as key sources of uncertainty for Eurozone inflation and development. He emphasised a data-dependent, meeting-by-meeting method, highlighting sensitivity to power costs, alternate charges and monetary stability.
In the meantime, recent financial knowledge launched Thursday confirmed that the US financial system contracted at an annualized tempo of 0.5% within the first quarter of 2025 — a steeper decline than the beforehand estimated 0.2% fall and marking the primary quarterly contraction in three years. The downward revision was primarily as a result of softer shopper spending and a pointy drop in exports, signaling deeper cracks in underlying demand.
In one other signal of a cooling financial system, US Preliminary Jobless Claims fell by 9,000 to 236,000 within the week ending June 21, coming in beneath expectations. Nevertheless, claims stay elevated in comparison with the yearly common, suggesting a waning momentum within the labor market regardless of the weekly decline.
On a extra optimistic word, Might’s Sturdy Items Orders surged by 16.4% — properly above market forecasts, providing a uncommon sign of resilience within the manufacturing sector. Nonetheless, the outsized rebound does little to offset broader issues triggered by weak GDP development and protracted labor market softness.
The stark divergence in knowledge factors has additional muddied the Fed coverage outlook, particularly as political stress mounts.
Trying forward, market members will intently watch Friday’s launch of the Fed’s most well-liked inflation gauge — the Core PCE Value Index — for recent perception into the timing of potential price changes. Till then, EUR/USD is prone to stay buoyed by US Greenback weak spot.
Euro PRICE At the moment
The desk beneath reveals the proportion change of Euro (EUR) in opposition to listed main currencies right this moment. Euro was the strongest in opposition to the US Greenback.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.53% | -0.49% | -0.67% | -0.58% | -0.38% | -0.53% | |
| EUR | 0.32% | -0.15% | -0.22% | -0.32% | -0.21% | -0.05% | -0.18% | |
| GBP | 0.53% | 0.15% | -0.06% | -0.17% | -0.07% | 0.13% | -0.03% | |
| JPY | 0.49% | 0.22% | 0.06% | -0.15% | -0.03% | 0.13% | 0.00% | |
| CAD | 0.67% | 0.32% | 0.17% | 0.15% | 0.10% | 0.20% | 0.14% | |
| AUD | 0.58% | 0.21% | 0.07% | 0.03% | -0.10% | 0.09% | 0.03% | |
| NZD | 0.38% | 0.05% | -0.13% | -0.13% | -0.20% | -0.09% | -0.06% | |
| CHF | 0.53% | 0.18% | 0.03% | -0.01% | -0.14% | -0.03% | 0.06% |
The warmth map reveals proportion modifications of main currencies in opposition to one another. The bottom foreign money is picked from the left column, whereas the quote foreign money is picked from the highest row. For instance, in the event you choose the Euro from the left column and transfer alongside the horizontal line to the US Greenback, the proportion change displayed within the field will signify EUR (base)/USD (quote).
