The euro fell in European trade on Thursday against a basket of major rivals, expanding losses for the third straight session against the dollar and plumbing a two-week trough after a US court order suspending Trumps tariffs.

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.

The Price

The EUR/USD price fell 0.7% today to $1.1210, a May 10 trough, with a session-high at $1.1297.

The euro fell 0.1% against the greenback on Wednesday on profit-taking away from a four-week high at $1.1419.

US Dollar

The dollar index rose over 1% on Thursday, expanding the gains for the third straight session and hitting a two-week high at 100.54 against a basket of major rivals.

Trumps Tariffs Suspension

The US Court of International Trade in Manhattan deemed US reciprocal tariffs on imports of other currencies as illegal.

The order, judged by a three-member panel, focuses on the exclusive rights of Congress to decide on tariff policies, and not the president.

Trumps use of emergency economic powers to impose the aggressive tariffs was deemed illegal by the court.

Its a massive blow to Trumps ability to use tariffs to threaten world governments with tariffs to force them to acquiesce to hit demands.

It led to a massive dollar surge against main rivals, including above 148 yen, with global stocks rallying as well.

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.

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