FX.co ★ Euro Retreats from 3-Year High as Data-Heavy Week Begins

The euro is currently trading just under the $1.14 level, having retreated from the recent three-year peak of $1.1573 reached on April 21. This movement comes as investors prepare for a bustling week filled with key economic data releases and continue to assess ongoing trade developments. Last week, indications of de-escalating trade tensions between the US and China provided some support to the dollar. However, Beijing has continued to dismiss President Trump's assertions that tariff negotiations between the two nations are in progress. This week, attention in the markets will primarily be on inflation data from both the Eurozone and the United States, culminating in Friday's eagerly awaited US nonfarm payrolls report. In terms of monetary policy, the European Central Bank reduced its deposit rate by 25 basis points to 2.25% last week, lowering borrowing costs to their lowest since the start of 2023. The ECB also removed earlier statements indicating its policy was "restrictive" but warned that the economic outlook has worsened due to escalating trade tensions.