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Prezzi
fxJul 3, 2026, 12:34 AM

Euro Drops to 1.1420 as Softer Inflation Dents ECB Rate Hike Expectations

EUR/USD fell to around 1.1420 during Asian trading on Thursday, pressured by a weaker Eurozone inflation outlook that reduces expectations for ECB rate hikes, even as the US dollar strengthens despite disappointing US labor data.

EURUSD

The euro weakened below 1.1450, trading near 1.1420 in early Asian hours on Thursday. The decline follows softer Eurozone inflation figures, which market participants interpret as reducing the likelihood of aggressive rate hikes by the European Central Bank.

The US dollar gained ground against the euro, supported by lingering caution even though the latest US employment reports for June came in below expectations. The broader market sentiment remains cautious as traders assess diverging monetary policy paths between the ECB and the Federal Reserve.

Source: FXStreet Forex News