From Yahoo Finance: 2025-06-04 21:38:00

The euro rose against the dollar as the European Central Bank hinted at a pause in rate cuts due to controlled inflation and economic risks from trade wars. The dollar’s weakness continued, down nearly 11% against the euro this year. Chinese President Xi Jinping and U.S. President Trump discussed trade tensions over the phone.

The U.S. dollar was further pressured by an increase in unemployment benefit applications, signaling a softening labor market amid tariff challenges. Nonfarm payrolls are expected to have increased by 130,000 jobs in May, with the unemployment rate staying at 4.2%. Market concerns continue over U.S. trade negotiations and tariff uncertainty.

Despite the dollar’s weakness against the euro, it gained slightly against safe-haven currencies like the yen and franc, possibly due to market positioning ahead of jobs data. The dollar index fell, while sterling rose against the dollar. Bitcoin, the largest cryptocurrency, also saw losses, down 2.5% at $102,061.52.



Read more at Yahoo Finance: Dollar drops against euro after ECB indicates possible end to rate easing cycle