Annual inflation in the euro area is projected to reach 2.0% in June 2025, a slight increase from 1.9% in May, according to a flash estimate released by Eurostat, the statistical office of the European Union.
Among the main components of euro area inflation:
The modest rise in headline inflation brings the euro area closer to the European Central Bank’s target, while the continued decline in energy prices offers some relief to households and businesses facing broader cost pressures. The steady increase in service prices indicates persistent underlying inflation within the region, an element the ECB will closely monitor as it considers its monetary policy stance in the coming months.
Eurostat will publish detailed final inflation figures for June later in July.
Source: Eurostat
The U.S. dollar extended its gains on Tuesday, weighing on major currencies and precious metals as markets digested recent trade developments and looked ahead to this week’s Federal Reserve policy decision.
DetailThe dollar index rose to 97.8 but ended the week lower, as traders weighed trade progress and awaited the Fed’s decision. The Fed is expected to hold rates steady, with two cuts priced in by year-end. The euro neared $1.175, its highest since 2021, supported by the ECB’s rate pause and geopolitical concerns. The yen edged up after a 15% tariff cap on Japanese goods, while persistent inflation kept BOJ hike expectations alive. The pound slipped to $1.347 as weak UK data fueled bets for a BoE cut in August.
Detail Euro Gains, Risk Appetite Returns (07.28.2025)U.S.–EU trade deal eased global tensions, lifting the euro and increasing risk appetite.
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