Euro futures slipped to lowest level since 2025.

In this currency market update, Bob Iaccino of Path Trading Partners analyzes the recent downward momentum in Euro futures, which have fallen for a fifth consecutive session to hit their lowest levels since May 2025. Both the European Central Bank (ECB) and the U.S. Federal Reserve maintain hawkish policy stances, creating a challenging directionless environment for the euro. While the ECB enacted a 25-basis-point rate hike earlier in June, a higher shift in the Fed's dot plots has firmed the U.S. dollar and neutralized the euro's upward catalysts. Additionally, structural economic weakness within the Eurozone adds a further drag, as a first-quarter contraction and low full-year 2026 GDP growth projections of 0.8% foster a stagflationary backdrop that keeps the currency capped and range-bound to the downside.