The US dollar continues to decline in the foreign exchange market.
Markets are awaiting new clues about the path of European interest rates.
The euro rose in the European market on Thursday against a basket of global currencies, moving into positive territory for the second day in a row against the US dollar, benefiting from the decline in US currency levels due to uncertainty over Trump's tariffs.
The euro's rise comes ahead of European Central Bank President Christine Lagarde's testimony before the unified parliament in Brussels, where comments are expected to include new clues about the path of European interest rates this year.
Price overview
Euro exchange rate today: The euro rose against the dollar by about 0.2% to ($1.1829), from today’s opening price of ($1.1810), and recorded a low of ($1.1804).
The euro ended Wednesday's trading session up 0.3% against the dollar, its third gain in the last four days, thanks to recoveries from a four-week low of $1.1742.
US dollar
The dollar index fell 0.15% on Thursday, extending its losses for the second consecutive session, reflecting the continued decline in the US currency against a basket of major and minor currencies.
This decline comes after the Union's speech to US President Donald Trump in Congress increased uncertainty in the markets, as it did not include sufficient assurances about the stability of trade policy following the Supreme Court's ruling that invalidated previous tariffs.
The U.S. Supreme Court ruled on Friday that President Donald Trump's emergency tariffs were unconstitutional. In response, Trump invoked Section 122, a provision that allows for tariffs of up to 15% but requires congressional approval to extend them after 150 days. Trump stated that he would use the 150-day period to formulate new tariffs that are in accordance with the law.
U.S. Trade Representative Jamison Greer said Wednesday that tariff rates on some countries will rise to 15% or more compared to the recently imposed 10%, without specifying particular trading partners or providing further details.
European interest rate
The money market's pricing of the likelihood of the European Central Bank cutting European interest rates by about 25 basis points next March is stable around 25%.
Traders have revised their expectations from the European Central Bank keeping interest rates steady throughout this year to at least one cut of around 25 basis points.
Christine Lagarde
In order to re-evaluate the above probabilities, investors are awaiting later today the testimony of European Central Bank President Christine Lagarde before the European Parliament's Economic and Monetary Affairs Committee. The testimony is scheduled to begin at 08:30 GMT.
Predictions regarding the performance of the Euro: Here at FX News Today, we predict that if Lagarde's comments are more aggressive than expected by the markets, the chances of a European interest rate cut this year will decrease, leading to a further rise in the Euro's exchange rate against a basket of global currencies.
