FX.co ★ Euro Steadies at $1.08 as Investors Weigh Inflation Data and Upcoming U.S. Tariffs

The euro remained steady around the $1.08 mark as investors analyzed important inflation data and prepared for upcoming U.S. tariffs scheduled for implementation on April 2. In Germany, regional Consumer Price Index (CPI) indicators offered a varied perspective, revealing that inflation in Europe's largest economy remained largely stable in March. Concurrently, preliminary CPI figures indicated that France’s inflation rate persistently held at a four-year low of 0.8%, Spain’s inflation rate unexpectedly declined to a five-month low of 2.3%, and Italy experienced an increase in inflation, reaching a 1.5-year peak of 2.0%. Diminishing inflationary pressures throughout the eurozone, combined with worldwide trade conflict concerns, have heightened expectations of a 65 basis point interest rate cut by the European Central Bank this year. Additionally, the euro is poised for a 3.1% rise for the month, buoyed by a broad weakening of the dollar amid shifting U.S. tariff policies under the Trump administration and Germany’s endorsement of a substantial fiscal package.