- The EUR/USD reaches its highest level since September 2021 and extends its rally per sixth consecutive session.
- From the ECB Guindos points out a data -based approach and warns about commercial and geopolitical risks for the eurozone prospects.
- The US GDP is checked down to -0.5% in the first quarter, the first contraction in three years. Unemployment applications decrease but remain high.
The euro (EUR) extends its profits against the US dollar (USD) for the sixth consecutive day on Thursday, with EUR/USD shooting over the 1,1700 zone for the first time since September 2021, marking a maximum of almost four years.
At the time of writing, the EUR/USD is negotiating about 1,1700 during the American negotiation hours. The main engine behind the EUR/USD rally is the combination of a robust demand for euros and a strong weakness of the US dollar, fed by the renewed criticism of the president of the Fed Jerome Powell by the US president Donald Trump. Speaking at a press conference after the NATO summit in The Hague, Trump described Powell as a terrible, “he accused him of being” very political, “and reiterated his demand for immediate rates cuts. He also revealed that he is considering “three or four” possible replacements for Powell, whose mandate ends in May 2026. Comments have intensified concerns about possible political interference in The US monetary policyeroding the confidence in the independence of the Fed and adding bearish pressure on the dollar.
The vice president of the European Central Bank (ECB), Luis de Guindos, said Thursday that future policy decisions will be guided by the evolution of commercial dynamics, maintaining the door open to additional cuts of fees.
Speaking in the Deutsche Bank forum, Guindos highlighted the increase in global commercial tensions and geopolitical risks as key sources of uncertainty for Inflation and the growth of the Eurozone. He emphasized a data dependent approach, meeting by meeting, highlighting the sensitivity to energy prices, exchange rates and financial stability.
Meanwhile, the new economic data published on Thursday showed that the US economy contracted at an annualized rhythm of 0.5% in the first quarter of 2025, a more pronounced fall than the 0.2% decrease estimated above and marking the first quarterly contraction in three years. The downward review was mainly due to weaker consumption and a strong drop in exports, pointing out deeper cracks in the underlying demand.
In another sign of an economy in cooling, the initial requests of Unemployment subsidy In the US, they fell 9,000 to 236,000 in the week that ended on June 21, being below expectations. However, applications remain high compared to the average of 2025, suggesting a weakening of the impulse in the labor market despite the weekly fall.
In a more positive note, requests for lasting goods in May increased 16.4%, well above market forecasts, offering a rare resilience signal in the manufacturing sector. Even so, the disproportionate rebound recently to compensate for the broader concerns triggered by the weak growth of GDP and the persistent weakness of the labor market.
The marked divergence at data points has further complicated the perspective of the Fed policy, especially as political pressure increases.
Looking ahead, market participants will closely follow the Friday’s publication of the Fed’s favorite inflation indicator, the underlying PCE price index, to obtain new perspectives on the moment of possible fees adjustments. Until then, the EUR/USD is likely to benefit from the weakness of the US dollar.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.53% | -0.49% | -0.67% | -0.58% | -0.38% | -0.53% | |
| EUR | 0.32% | -0.15% | -0.22% | -0.32% | -0.21% | -0.05% | -0.18% | |
| GBP | 0.53% | 0.15% | -0.06% | -0.17% | -0.07% | 0.13% | -0.03% | |
| JPY | 0.49% | 0.22% | 0.06% | -0.15% | -0.03% | 0.13% | 0.00% | |
| CAD | 0.67% | 0.32% | 0.17% | 0.15% | 0.10% | 0.20% | 0.14% | |
| Aud | 0.58% | 0.21% | 0.07% | 0.03% | -0.10% | 0.09% | 0.03% | |
| NZD | 0.38% | 0.05% | -0.13% | -0.13% | -0.20% | -0.09% | -0.06% | |
| CHF | 0.53% | 0.18% | 0.03% | -0.01% | -0.14% | -0.03% | 0.06% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
