Euro inched higher on Friday against a basket of major rivals, moving in a tight range against the US dollar as most markets close for the Good Friday holiday.

The European Central Bank cut interest rates by 25 basis points this week as expected to October 2022 lows, with President Christine Lagarde describing tariffs as a shock to demand.

The Price

The EUR/USD rose 0.2% today to $1.1385, with a session-low at $1.1359.

The pair closed down over 0.3% on Thursday, the second loss in three days on profit taking away from a three-year peak at $1.1474.

The ECB

The European Central Bank cut interest rates by 25 basis points to 2.25% as expected by most analysts today.

Its the seventh consecutive rate cut as the ECB attempts to boost the struggling eurozone economy amid a trade war with the US.

ECB President Christine Lagarde said that tariffs represent a shock, but their impact on inflation remains unclear.

She said the picture might not become clear by the next policy meeting in June, as the 90-day pause on tariffs would still be in place by then.

European Rates

Reports showed that some ECB officials see a high probability of a rate cut in June.

Markets are pricing in a 60% chance of an ECB rate cut in June.

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