Euro declines after ECB rate decision

The euro fell against most major rivals on Thursday after an expected policy decision by the European Central Bank.

The ECB cut main borrowing rates by 25 basis points to 2.5% as expected, noting in its statement that inflation has slowed down in line with forecasts.

The ECB now expects inflation to hit 2.3% this year, before slowing down to 1.9% in 2026, before rising to 2% in 2027.

The ECB reduced forecasts for eurozone economic growth in 2025 to 0.9%, and in 2026 to 1.2%, and in 2027 to 1.3%. 

On trading, the EUR/USD pair fell 0.1% as of 21:29 GMT to $1.0781.

Aussie

The Australian dollar fell 0.1% against its US counterpart as of 21:30 GMT to 0.6332.

US Dollar

The dollar index fell 0.1% today to 104.2, with a session-high at 104.3, and a low at 104.7.

US President Donald Trump announced this week the implementation of 25% tariffs on Canadian and Mexican goods, in addition to a 10% tariff on Chinese imports.

He then first walked back on the tariffs for automakers, then walked back on all the tariffs for a month.

Earlier US data showed unemployment claims fell 21 thousand to 221 thousand last week from 242 thousand in the previous reading.