The euro's movements came with the persistence of stubborn US inflation on the Fed's preferred measure, which in the end does not seem to have changed the markets' hypothesis about the impossibility of starting rate cuts by the beginning of the second half.
The improved performance of the Eurozone economy supports the single currency to cut its losses against the dollar as interest rates and bond yields continue to be very high.
The markets still expect only a 9% probability of the possibility of the Fed reducing current rates by 25 basis points, which is the lowest since attention turned to this month last February, according to the CME FedWatch Tool.
Geopolitical tensions may impact currency movements, with the dollar seen as a safe haven in uncertain times.
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