Euro Drops Below $1.14 Amid Trade, ECB Pressure

The euro has dropped below $1.14 against the US dollar, pressured by renewed demand for the greenback following signals from the White House about possible tariff reductions on Chinese goods and ongoing trade negotiations. President Trump stated that discussions with China continue, though Beijing denies recent talks and calls for the US to lift tariffs, maintaining trade tensions. The Trump administration's assurance that Fed Chair Jerome Powell will not be dismissed has helped stabilize markets and bolster the dollar. Expectations for another European Central Bank rate cut in June, following a recent 25bps reduction and dovish ECB statements, are further weighing on the euro. The euro had gained over 5% against the dollar in April, but recent developments have reversed some of those gains. Investors remain focused on upcoming economic data and trade policy updates for further direction.