The euro rose in European trade on Monday against a basket of major rivals, moving in a positive zone against the dollar amid renewed negative pressures on the US currency due to mounting US-China trade tensions.

Recent positive eurozone data and bullish remarks from ECB officials led to divisions among policymakers about the prospect of a rate cut in June, as traders await main inflation data for the eurozone tomorrow.

The Price

The EUR/USD rose 0.3% to $1.1382, with a session-low at $1.1345.

The euro fell 0.2% against the dollar on Friday following positive US data.

US Dollar

The dollar index fell 0.3% on Monday, resuming losses after a hiatus on Friday against a basket of major rivals.

The decline comes amid renewed inflationary pressures on the US currency amid concerns about economic recession due to mounting US-China trade tensions.

China responded to US accusations of violating the Geneva trade agreement, by also accusing Washington of violating the deal, in a sign of deteriorating conditions between the two biggest economies in the world.

Trade tensions resumed after a short hiatus last month, when both sides signed a deal to suspend most tariffs for 90 days in Geneva.

Then the Trump administration put new limits on chip and chemical exports to China, and cancelled Chinese students visas, triggering the ire of Beijing.

Chinas commerce ministry warned that such measures contradict the spirit of the Geneva deal, but conversely, Beijing maintained strict control over exports of rare earth minerals.

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.