FX.co ★ Euro Eases as Traders Digest Central Bank Policy Moves

The euro experienced a slight decline, dropping just below $1.13, as investors remained cautious following a series of monetary policy announcements and in anticipation of significant developments in global trade policy. The U.S. Federal Reserve maintained interest rates at their current levels, as anticipated, while warning that President Donald Trump's tariff measures could potentially lead to higher prices, slow economic growth, and increase unemployment if they persist. Similarly, central banks in Sweden and Norway chose to keep interest rates unchanged, despite growing concerns about the economic outlook amid intensifying trade tensions. Meanwhile, the Bank of England is expected to reduce its base rate by 25 basis points—marking its fourth consecutive rate cut—in response to both the global trade war and ongoing domestic economic challenges. In related developments, Trump announced that a major trade agreement would be revealed today, with high-level U.S.-China trade negotiations scheduled to resume this weekend.