The euro clearly rose against the US dollar during trading in the major currency market on Tuesday, marking the euro-dollar’s longest daily winning streak since September 2009.
European statistics released this morning showed a surge in overall inflation growth in the Eurozone, recording 2% during the completed June, compared to a growth rate of 1.9% for May. At the same time, the year-on-year change in the core consumer price index for June grew at the same pace as the core rate in May, which reached 2.3%.
In light of this data, the European Central Bank may not be able to continue its interest rate cut cycle in upcoming meetings; especially amid increasing inflationary pressures due to heightened defense spending and US tariffs.
Accordingly, ECB member Kazaks stated that any future interest rate cuts will be at a gradual pace, and the bank's deputy explained that further reductions will not help improve the economy, as we need certainty.
These remarks reflect a more hawkish tone from European monetary policymakers, which supported the euro-dollar increases, coinciding with a strong drop in the US dollar, resulting from uncertainty regarding Trump's policies and their impact on economic activity.
During trading in the major currency market today, the euro-dollar recorded a clear increase of about 0.16%, trading near the 1.806 dollar level, which is the highest level for the euro-dollar pair since September 2021.
