|

EUR/USD climbs to six-week high as ECB cuts interest rates, US Jobless Claims disappoint

  • EUR/USD extends its gains, reaching its highest level since April 22 on Thursday.
  • The ECB cuts its key interest rate by 25 bps, signaling a data-dependent approach moving forward.
  • US Initial Jobless Claims rise to 247,000, adding pressure on the US Dollar ahead of the May NFP report due on Friday.

The Euro (EUR) edges higher against the US Dollar (USD) on Thursday, following choppy price action, as traders react to the European Central Bank’s (ECB) widely expected interest rate cut and disappointing US Initial Jobless Claims, which weigh on the Greenback.

At the time of writing, EUR/USD extends gains, trading around 1.1480 during the American session — a level last seen on April 22. The Euro’s upward momentum comes as the US Dollar softens across the board, with the US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six different currencies, edging lower toward 98.50. The US Dollar remains under pressure after US Initial Jobless Claims rose more than expected in the week ending May 31, reinforcing dovish expectations for the Federal Reserve (Fed) and further tilting the short-term bias in favor of the Euro.

The European Central Bank (ECB) has cut its interest rates by 25 basis points (bps) on Thursday, lowering the Rate On Deposit Facility to 2.00% and the Main Refinancing Operations Rate to 2.15%. This marks the seventh consecutive cut – the eighth since the central bank started the current easing cycle in June last year –  aimed at supporting the Euro area economy amid easing inflation and global trade uncertainties.

The ECB's updated projections indicate that headline inflation is expected to average 2.0% in 2025 and 1.6% in 2026, with real Gross Domestic Product (GDP) growth anticipated at 0.9% in 2025 and 1.1% in 2026. ECB President Christine Lagarde emphasized a data-dependent, meeting-by-meeting approach to future monetary policy decisions, refraining from pre-committing to a specific rate path.

In the US, Initial Jobless Claims unexpectedly rose to 247,000 in the week ending May 31, up from 240,000 the previous week and defying forecasts for a drop to 235,000. The unexpected rise points to emerging softness in the labor market and added pressure on the US Dollar, as traders look ahead to the highly anticipated May Nonfarm Payrolls (NFP) report due on Friday for further monetary policy clues by the Fed.

Euro PRICE Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.49%-0.31%0.30%-0.19%-0.45%-0.46%-0.10%
EUR0.49%0.23%0.79%0.33%0.05%-0.04%0.41%
GBP0.31%-0.23%0.60%0.09%-0.16%-0.27%0.18%
JPY-0.30%-0.79%-0.60%-0.50%-0.78%-0.84%-0.38%
CAD0.19%-0.33%-0.09%0.50%-0.30%-0.38%0.09%
AUD0.45%-0.05%0.16%0.78%0.30%-0.11%0.36%
NZD0.46%0.04%0.27%0.84%0.38%0.11%0.47%
CHF0.10%-0.41%-0.18%0.38%-0.09%-0.36%-0.47%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold adds to Thursday's gains as softer bond yields drag USD to over one-week low

Gold attracts buyers for the second straight day on Friday amid a broadly weaker US Dollar, though it remains confined in a two-week-old range. The USD Index (DXY), which tracks the Greenback against a basket of currencies, fell to a nearly two-week low as Federal Reserve Chair Kevin Warsh’s remarks at the Annual IMF and World Bank Group Meetings did little to alter the rate outlook.

Busy week for Ripple’s RLUSD: What changes for stablecoin holders?
Ripple’s RLUSD is gaining ground across institutional finance, with a major bank launching custody services, a new wallet integration making it easier for developers to build payments and agentic experiences on the network, and a brokerage platform planning to use the stablecoin for settlement.
Hot inflation, falling yields: A new test for global markets
Global markets are confronting a difficult combination: renewed inflation pressure, expensive capital and growing scrutiny of the investment supporting the AI boom. The most revealing development this week was the demand for government bonds even as US inflation accelerated. My assessment is that investors should treat this as a test of financing resilience.
Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff
Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.