FX.co ★ Euro Hovers at $1.14

The euro remained steady around the $1.14 level, approaching three-year highs achieved in April, as traders paid close attention to developments in the ongoing trade discussions between the United States and China. Simultaneously, investors evaluated statements from European Central Bank (ECB) officials for insights into the ECB's forthcoming policy actions. François Villeroy de Galhau, a member of the ECB's Governing Council, remarked that the ECB retains the capability to rapidly adjust interest rates, even after implementing its eighth consecutive reduction, which he asserted had "normalized" monetary policy. The previous week, the ECB lowered rates as anticipated. However, President Christine Lagarde suggested that the cycle of easing may be nearing its conclusion. The deposit facility rate currently stands at 2%, while inflation in the Eurozone decreased to 1.9% in May 2025. Meanwhile, the region’s economy demonstrated a growth of 0.6% in the first quarter of 2025, marking the fastest expansion since the third quarter of 2022.