Euro climbs after ECB interest rate decision

Euro rose against most major rivals following the European Central Bank’s policy decisions and subsequent remarks by President Christine Lagarde. 

The ECB revealed its decision to cut rates by 25 basis points to 4.25%, in a move that was expected. 

In her press conference, Lagarde said that global economic weakness and mounting trade tensions will impact the eurozone growth rate. 

She cautioned that local inflation in the eurozone remains high, but she expects the pace of wages growth to stabilize this year. 

Lagarde expects inflation to hover around current levels for the rest of the year. 

On trading, the EUR/USD rose 0.2% as of 19:21 GMT to $1.0888.

The Loonie 

The CAD/USD rose 0.2% as of 19:21 GMT to 0.7312.

Earlier government data showed Canada’s trade balance registered a deficit of one billion Canadian dollars, while analysts expected 1.2 billion dollars. 

US Dollar

The US dollar index fell 0.1% as of 19:05 GMT to 104.1, with a session-high at 104.3, and a low at 104.05.

Earlier data showed US unemployment claims rose by 8 thousand to 229 thousand in the week ending  June 1, while analysts expected a drop to 219 thousand.

Now investors await the US payrolls report tomorrow, crucial for gauging the state of the economy and the likely path ahead for monetary policies.