Updated
Updated · Bloomberg · Jun 23
Euro Falls to $1.1405, an August Low, as Weak Data Dims ECB Rate Bets
Updated
Updated · Bloomberg · Jun 23

Euro Falls to $1.1405, an August Low, as Weak Data Dims ECB Rate Bets

1 articles · Updated · Bloomberg · Jun 23

Summary

  • $1.1405 marked the euro’s weakest level since August after the currency slid 0.2% in London trading.
  • German private-sector and French business activity both contracted in June, while Christine Lagarde’s dovish comments pushed traders to scale back expectations for ECB rate hikes.
  • Options markets showed the most bearish positioning on the euro in more than three months, reinforcing the move lower.
  • The drop underscores a widening policy-path gap between the ECB and the Federal Reserve that is weighing on the common currency.

Insights

With America's AI boom widening the growth gap, is the euro's slide against the dollar now an irreversible long-term trend?
Trapped between war-fueled inflation and a looming recession, can the ECB save the economy without sacrificing the euro?