Single currency approaches key support
The euro has fallen to approximately $1.14, its weakest exchange rate against the US dollar since June 2025. The currency has declined by 2.15% during the past four weeks and by 1.89% over the last 12 months.
The latest retreat pushed the euro slightly below its previous annual low of around $1.1410, recorded in mid-March, as weaker economic indicators encouraged further selling.
Traders monitor the $1.1390 threshold
A move below $1.1390, the low reached last August, could open the way for a decline towards the $1.1340 region. Although intraday momentum indicators suggest the euro may be oversold, the former support zone between $1.1420 and $1.1425 could now limit any recovery.
Eurozone activity remains under pressure
Preliminary purchasing managers’ index data for June offered little support to the currency. The eurozone manufacturing PMI slipped from 51.6 to 51.3, indicating that industrial growth continued but lost some momentum.
The services reading improved from 47.7 to 48.9, showing a slower contraction. The composite PMI also rose, reaching 49.5 compared with 48.8 in April. Nevertheless, it remained below the critical 50-point boundary separating expansion from contraction for a third consecutive month.
This represents a notable deterioration from last year, when the composite indicator did not fall below 50 at any point.
Germany and France add to economic concerns
Composite activity indicators for Germany and France remained in contraction territory and weakened compared with their previous readings. The disappointing performance of the eurozone’s two largest economies intensified pressure on the single currency.
Japanese yen resists the dollar’s advance
The yen was the only major G10 currency to avoid significant losses during the session. Japan’s finance minister highlighted discussions with US Treasury Secretary Scott Bessent, who has made no public comments about the exchange rate following interventions by the Bank of Japan in April and May.
The BOJ delivered an interest-rate increase this month after keeping policy unchanged in April. That decision could help Japanese authorities secure greater support from the United States for their currency strategy, similar to the cooperation observed in January.
