News and market trends with the weekly currency report

08 June 2026

The ECB's Gamble: Tightening When Growth Falters

Thursday, the ECB is expected to raise its rates by 25 basis points. A move 90% certain. But the context darkened on Friday: the eurozone GDP was revised to -0.2% in the first quarter - the first contraction since the end of 2022 - while US employment surpassed expectations. As a result, the euro closed around 1.152, at its lowest since early April. The ECB is therefore preparing to tighten its policy at a time when European growth is showing signs of weakness. Bold gamble, or steering mistake?