The euro rose in European trade on Monday against a basket of major rivals, heading for the second profit in three days against the US dollar amid concerns about the US financial stability following a credit downgrade.

Also recent European inflation data led to divisions on the odds of an ECB interest rate cut in June as traders now await more data to gather concrete clues.

The Price

The EUR/USD price rose 0.35% today to $1.1199, with a session-low at $1.1170.

The euro closed down 0.2% on Friday against the dollar on profit-taking away from a week high at $1.1266 following strong US inflation data.

The euro lost 0.75% last week, marking the fourth weekly loss in a row as global trade tensions cooled.

US Credit Rating

Moodys cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.

Moodys pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the worlds largest economy.

European Rates

Recent eurozone inflation data showed prices rose past estimates in April, renewing pressure on the European Central Banks policymakers.

Following the data, the odds of an ECB 0.25% rate cut in June fell from 60% to below 50%.

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