Euro Weakens Further

2026-06-23 09:19 By Joana Taborda 1 min. read

The euro weakened to $1.14, its lowest level since June 2025, under pressure from broad US dollar strength amid expectations that the Fed will raise interest rates later this year following hawkish comments from Fed officials last week.

In the Euro Area, the ECB raised interest rates by 25bps this month, in line with expectations.

However, ECB President Lagarde said yesterday that the central bank does not need to respond more aggressively to developments stemming from the Middle East conflict, noting that inflation is expected to return to target over the medium term.

Markets have since pared back some expectations for additional ECB tightening following Lagarde’s comments, though investors still price in at least one more 25bps hike this year.

Meanwhile, weaker economic data added to the cautious outlook.

Preliminary PMI readings showed that private sector activity in Germany contracted at the fastest pace since 2024, while the Euro Area also remained in contraction territory.



News Stream
Euro Weakens Further
The euro weakened to $1.14, its lowest level since June 2025, under pressure from broad US dollar strength amid expectations that the Fed will raise interest rates later this year following hawkish comments from Fed officials last week. In the Euro Area, the ECB raised interest rates by 25bps this month, in line with expectations. However, ECB President Lagarde said yesterday that the central bank does not need to respond more aggressively to developments stemming from the Middle East conflict, noting that inflation is expected to return to target over the medium term. Markets have since pared back some expectations for additional ECB tightening following Lagarde’s comments, though investors still price in at least one more 25bps hike this year. Meanwhile, weaker economic data added to the cautious outlook. Preliminary PMI readings showed that private sector activity in Germany contracted at the fastest pace since 2024, while the Euro Area also remained in contraction territory.
2026-06-23
Euro Hits 14-week Low
EURUSD decreased to 1.14, the lowest since March 2026. Over the past 4 weeks, Euro US Dollar lost 1.93%, and in the last 12 months, it decreased 1.66%.
2026-06-23
Euro Hovers at 3-Month Low
The euro weakened to $1.146, hovering at its lowest level since mid-March, despite signs of diplomatic progress between the US and Iran. Negotiators from Tehran and Washington agreed on a roadmap toward a potential final agreement, easing concerns over energy supply disruptions. Investors also monitored developments in UK politics after Prime Minister Keir Starmer announced his resignation. Oil markets reacted positively to signs of progress in Middle East discussions, even as President Donald Trump warned of possible military action if Hezbollah attacks from Lebanon against Israel continue. The US and Iran have also established a communication channel to prevent incidents and support the safe movement of commercial vessels through the Strait of Hormuz. Meanwhile, money markets continue to price in at least one additional European Central Bank rate hike this year, following the ECB’s recent 25 bps increase that lifted the deposit rate to 2.25%, the first rate rise since 2023.
2026-06-22