Euro Slips on Weak Inflation
The euro edged down to $1.14, pressured by softer-than-expected inflation data, a downgraded global growth outlook from the OECD, and heightened political uncertainty in the Netherlands.
Eurozone consumer prices rose 1.9% yoy in May, below the 2.0% forecast, reinforcing expectations for a 25 basis point ECB rate cut later this week—likely the last before a pause in the easing cycle. Meanwhile, the OECD lowered its global growth forecast, projecting GDP to slow from 3.3% in 2024 to 2.9% in both 2025 and 2026, citing escalating trade tensions.
In the Netherlands, political instability intensified after the government collapsed over immigration policy disputes, prompting far-right leader Geert Wilders to pull his party from the ruling coalition.
Trade policy uncertainty also remained in focus, with reports indicating the US is demanding final offers in ongoing negotiations by Wednesday—just days after former President Trump threatened to double tariffs on steel and aluminum.
Source: Trading Economics
