Friday, 18 July 2025
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Euro Little Changed at $1.13
Tuesday, 6 May 2025 16:13 WIB | EUR/USD | EuroEuro Stoxx

The euro held steady around $1.13, slightly below the nearly three-year high reached in April, continuing to benefit from broad dollar weakness. Traders remained focused on the ongoing trade war, particularly negotiations between the US and several Asian countries, while talks with China appeared to have stalled.

Meanwhile, Friedrich Merz faced an unexpected setback after failing to secure election as German Chancellor in the first round of parliamentary voting. Although the next steps remain uncertain, it potentially delayed Merz's swearing-in. His CDU-led coalition with the centre-left Social Democrats, along with plans to increase public spending, had been bolstering confidence in Germany's economic recovery. On the monetary policy front, the European Central Bank is expected to continue cutting interest rates in June, while the Federal Reserve is widely expected to hold rates steady this month.

Source: Trading Economics

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