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fxJul 6, 2026, 3:45 PM

Euro Dips Against Dollar as Rate Outlook Shifts

The euro weakened against the US dollar on Monday as traders returned from a long holiday weekend and weighed shifting expectations for Fed and ECB interest rate policy. EUR/USD traded near 1.1421, down 0.12%.

EURUSD

The euro edged lower against the US dollar on Monday, with EUR/USD trading around 1.1421, down 0.12% on the day. The move came as market participants returned from the extended US Independence Day holiday and reassessed the rate outlook for both the Federal Reserve and the European Central Bank.

Traders are weighing the possibility of further tightening from the Fed against a more cautious stance from the ECB, creating headwinds for the single currency.

Source: FXStreet Forex News