The euro fell in European trade on Wednesday against a basket of major rivals, extending losses for the second straight session against the US dollar and backing off a four-week high on profit-taking.

Hot inflation data and bullish remarks from ECB officials led to divisions among policymakers on the rate decision in June, with investors awaiting German and Spanish inflation data this week to gather more clues.

Recent US data showed consumer confidence beat estimates in May, indicating that concerns about US recession have diminished.

The Price

The EUR/USD price fell 0.25% today to $1.1300, with a session-high at $1.1345.

The euro fell 0.5% on Tuesday against the dollar, on track for the first loss in three days away from a four-week high at $1.1419.

European Rates

Recent eurozone data showed inflation rose past estimates in April, renewing pressures on ECB policymakers.

ECB President Christine Lagarde said the euro could be a practical alternative to the dollar if governments managed to bolster the financial and security structures in the EU.

Now markets estimate a less than 50% likelihood for a 0.25% ECB rate cut in June.

US Dollar

The dollar index rose 0.3% on Wednesday, extending gains for the second session against a basket of major rivals.

It comes as US-EU trade tensions receded with Trump granting the EU another chance for reaching a trade deal before July 9, backing off his 50% tariff threat for EU goods.

Recent data showed the CB consumer sentiment index rallying to 98 in May, easily beating estimates of 87.1.

Now investors await the Federal Reserves meeting minutes later today, expected to provide fresh clues on the future path of US interest rates.

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