FX.co ★ Euro Surges Past $1.15

The euro has surged above $1.15, marking its peak since November 2021, driven by contrasting signals from the European Central Bank (ECB) and the US Federal Reserve, alongside renewed concerns over trade conflicts. Recently, comments from ECB officials have strengthened the anticipation that the bank might soon halt its easing cycle, adopting a cautious stance to assess the economic impact of the newly imposed US tariffs. In May, inflation within the Eurozone decreased to 1.9%, while the ECB carried out its eighth consecutive rate cut, reducing the deposit facility rate to 2%. Conversely, the US dollar has weakened, influenced by lower-than-expected US inflation data and rising trade tensions, leading to speculation that the Federal Reserve could start cutting rates as early as September. Adding to market uncertainty, President Donald Trump announced on Wednesday plans to send letters to key trading partners, outlining new unilateral tariff rates, within the coming weeks.