Euro Edges Higher
The euro edged closer to $1.13, extending its recovery from the one-month low reached on May 12th, supported by broad-based weakness in the US dollar.
The decline in the greenback followed Moody’s decision to downgrade the US credit rating by one notch, from Aaa to Aa1, citing mounting concerns over rising government debt and widening fiscal deficits.
The downgrade fueled worries about potential economic fallout in the US and weighed on American assets. Meanwhile, the EU and the UK reached a tentative agreement on key areas including defense and security cooperation, fisheries, and youth mobility, ahead of the upcoming EU-UK summit on Monday.
According to EU officials, the deal could allow British companies to participate in major EU defense contracts, marking a step forward in post-Brexit relations. On the monetary policy front, the European Central Bank is expected to continue lowering interest rates in June, with the possibility of further easing beyond that point.
Source: Trading Economics
