From Yahoo Finance: 2025-06-27 16:32:00

The euro is on track for its longest streak of monthly gains in eight years, rising over 3% in June amid a weakening dollar. Speculative traders are betting on further dollar decline, with hedge funds turning bullish on the euro. The outlook for the dollar is also impacted by speculation on the next Fed chair and the US economy’s performance.

European policymakers are pushing for measures to enhance the euro’s global status, as risk reversals on the dollar index signal expectations of a weaker greenback. Analysts predict further US interest rate cuts will weigh on the dollar, boosting the euro and the yen. The euro has gained 13% against the dollar this year, reaching $1.1753 recently.

US consumer spending dropped in May, while the core PCE price index slightly exceeded expectations. Analysts warn of a stagflation scenario, which is not favorable for the dollar. The shifting economic landscape and geopolitical tensions are driving currency traders to focus on the Fed’s rate cut trajectory, impacting the euro’s strength against the dollar.



Read more at Yahoo Finance: Euro Poised for Best Run Since 2017 as Dollar’s Slump Picks Up