The euro rose in European trade on Thursday against a basket of major rivals, expanding gains for the sixth straight session against the US dollar and hitting a four-year high, and surpassing the $1.17 barrier for the first time since 2021 on strong demand.
It comes amid renewed concerns about the independence of the Federal Reserve after renewed attacks by US President Donald Trump against Fed Chair Jerome Powell.
The odds of an ECB interest rate cut in July also dropped as traders await more clues on the future path of policy easing in Europe this year.
The Price
The EUR/USD price rose 0.5% today to $1.1717, the highest since 2021, with a session-low at $1.1653.
The euro closed up 0.45% on Wednesday, the fifth daily profit in a row, and the longest such streak of daily gains in 2025 following the Iran-Israel ceasefire.
The Dollar
The dollar index fell 0.45% on Thursday and expanded the losses for the fourth straight session, plumbing three-year lows at 97.27 against a basket of major rivals.
The decline comes amid renewed concerns about US financial stability as Trump attacks Powell once more.
Trump attacks Powell
Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.
Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.
The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.
European Rates
ECB President Christine Lagarde hinted at the possible end of the current cycle of policy easing, which was in response to a combined shock such as the Covid 19 pandemic, the Ukrainian war, and the energy crisis.
According to a Reuters source, most ECB members now aim at holding interest rates unchanged in July, with the global markets now expecting just an additional 25 basis points of rate cuts by the end of the year.
The odds of a 0.25% ECB rate cut in July now stood below 30%, with traders awaiting more eurozone data and remarks by ECB officials to gather more clues.
