Euro Area June Inflation Cooler Than Expected, Weighing on Euro and ECB Rate Cut Expectations

Euro area CPI numbers for June revealed cooler-than-expected inflation, with the year-over-year rate at 2.8% against a 3% expectation. Core inflation also eased to 2.4% from 2.6%. This development led to a depreciation of the euro against major currencies and decreased market expectations for another rate cut from the European Central Bank this year.