Going into the European session, the euro is still failing to make a profit amid investor vigilance ahead of the release of US inflation data.
The euro slipped lower below 1.0600 against the USD after investors were disappointed with the European Central Bank’s (ECB) announcement to raise interest rates by 25 basis points in July against market expectations of a 50 basis point increase.
With inflation warming up in the European Zone hitting 8.1% in May, markets are expecting greater action from the ECB to curb it.
ECB policymaker Francois Villeroy de Galhau said the central bank would raise interest rates gradually until they reached a neutral rate, which is between 1% and 2%.
Meanwhile, the greenback dollar continued to strengthen by climbing higher than its major rivals, although consumer prices in the US are expected to ease further in May.
This is because, the Federal Reserve (Fed) policy decision for the next two meetings will not be affected by the reading of inflation data that will be published.
The pound was also dragged lower following the strengthening US dollar, denying the latest economic plan unveiled by UK Prime Minister Boris Johnson to address the high cost of living crisis.
