The euro held above 1.14, buoyed by the dollar's general weakness and investors' reaction to the European Central Bank's widely anticipated rate cut and downward revision of its inflation forecasts.

At her press conference, President Christine Lagarde declared that the ECB was nearing the end of its easing cycle, signaling that a pause might follow today's decision. Headline inflation is now expected to average 2.0% in 2025, 1.6% in 2026, then return to 2.0% in 2027.

Estimates for 2025 and 2026 have been revised downwards by 0.3 percentage points compared with March, reflecting lower energy price assumptions and a stronger euro.

Core inflation (excluding energy and food) should average 2.4% in 2025 and 1.9% in 2026 and 2027, remaining broadly unchanged.

On the growth front, the ECB forecasts GDP growth of 0.9% in 2025, 1.1% in 2026 and 1.3% in 2027.