FX.co ★ Euro Remains Below $1.14 as Traders Digest Key Data, Set for 5% Monthly Gain

The euro hovered just below the $1.14 level as investors analyzed new economic indicators and monitored ongoing trade developments. Germany's GDP increased by 0.2% in the first quarter of 2025, meeting expectations, fueled by robust consumption and investment. In contrast, France experienced weaker growth of only 0.1%, hindered by sluggish investment and exports. Conversely, Spain and Italy exceeded expectations with growth rates of 0.6% and 0.3%, respectively. On the inflation front, France's annual rate remained stable at 0.8% in April, aligning with forecasts, while regional consumer price index data from Germany indicated a continued easing of inflationary pressures. Despite these regional differences, the euro was set for a monthly rise exceeding 5% against the U.S. dollar. This surge was influenced by changing U.S. tariff policies under the Trump administration, which dampened confidence in American assets and exerted pressure on the dollar.