- The EUR/USD extends its profits, reaching its highest level since April 22 on Thursday.
- The ECB cuts its key interest rate in 25 basic points, pointing out a data dependent approach in the future.
- Initial applications for unemployment subsidy in the US increase to 247,000, adding pressure on the US dollar before the May NFP report that will be published on Friday.
The euro (EUR) advances against the US dollar (USD) on Thursday, after a volatile price action, while operators react to the interest rate cut of the European Central Bank (ECB) widely expected and the disappointing initial applications of unemployment subsidy in the US, which weigh on the dollar.
At the time of writing, the EUR/USD extends its profits, quoting around 1,1480 during the American session, a level not seen since April 22. The upward impulse of the euro is produced while the US dollar weakens in general, with the US dollar index (DXY), which tracks the yield of the dollar against a basket of six different currencies, going down to 98.50. The US dollar is still under pressure after the initial applications for unemployment subsidy in the US increased more than expected in the week that ended on May 31, reinforcing DOVISH expectations for the Federal Reserve (Fed) and further tilting the short -term trend in favor of the euro.
The European Central Bank (ECB) has cut its interest rates in 25 basic points (PBS) on Thursday, reducing the rate of deposition to 2.00% and the rate of refinancing operations main to 2.15%. This is the seventh consecutive cut, the eighth since the Central Bank began the current relaxation cycle in June last year, destined to support the economy of the euro zone amid the decrease in inflation and uncertainties of global trade.
Updated ECB projections indicate that the general inflation is expected to average 2.0% in 2025 and 1.6% in 2026, with a growth of the Gross Domestic Product (GDP) real anticipated at 0.9% in 2025 and 1.1% in 2026. The president of the ECB, Christine Lagarde, emphasized a data dependent approach, meeting by meeting monetary, refraining from previously compromising to a specific rate path.
In the US, the initial applications for unemployment subsidy unexpectedly increased to 247,000 in the week that ended on May 31, compared to 240,000 the previous week and challenging the forecasts of a fall to 235,000. The unexpected increase points to an emerging softness in the labor market and adds pressure on the US dollar, while operators look at the very anticipated report of non -agricultural payroll (NFP) of May that will be published on Friday to obtain more clues on the monetary policy of the Fed.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency in front of the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.49% | -0.31% | 0.30% | -0.19% | -0.45% | -0.46% | -0.10% | |
| EUR | 0.49% | 0.23% | 0.79% | 0.33% | 0.05% | -0.04% | 0.41% | |
| GBP | 0.31% | -0.23% | 0.60% | 0.09% | -0.16% | -0.27% | 0.18% | |
| JPY | -0.30% | -0.79% | -0.60% | -0.50% | -0.78% | -0.84% | -0.38% | |
| CAD | 0.19% | -0.33% | -0.09% | 0.50% | -0.30% | -0.38% | 0.09% | |
| Aud | 0.45% | -0.05% | 0.16% | 0.78% | 0.30% | -0.11% | 0.36% | |
| NZD | 0.46% | 0.04% | 0.27% | 0.84% | 0.38% | 0.11% | 0.47% | |
| CHF | 0.10% | -0.41% | -0.18% | 0.38% | -0.09% | -0.36% | -0.47% |
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.
