Euro exchange rate today 5/17/2025: Euro falls as US consumer inflation expectations rise higher

EUR/USD world exchange rate today 5/17/2025

The EUR/USD pair edged down 0.29% to 1.1152 EUR/USD. The US dollar index (DXY) rose above 101.07, reflecting the USD's recovery against six major currencies.

Consumer inflation expectations for the next year rose sharply from 6.5% to 7.3%. This development increases the possibility that the US Federal Reserve will continue to hold interest rates instead of cutting them, as previously expected.

According to the CME FedWatch forecasting tool, the probability of the Fed keeping interest rates at 4.25%–4.50% at the June meeting is 91.8%, and at the July meeting is 65.1%.

The University of Michigan Consumer Sentiment Index (CSI) also caused concern when it fell to 50.8, the lowest level since June 2022 and much lower than the expectation of 53.4. This was the fifth consecutive month of decline.

The euro also weakened as markets increasingly expect the European Central Bank (ECB) to cut interest rates further at its upcoming policy meeting. The ECB is seen aiming to return eurozone inflation to its 2% target this year amid a less-than-optimistic economic outlook.

ECB Governing Council member Martins Kazaks has suggested that one or two interest rate cuts from the current 2.25% are possible this year, but he has also stressed caution, saying decisions should be made meeting by meeting, depending on the global situation.

On the economic front, the eurozone's first-quarter GDP was revised down slightly to 0.3% from the previously reported 0.4%. However, GDP growth was still 1.2% year-on-year. Meanwhile, employment change in the first quarter recorded a quarterly increase of 0.3%, higher than the initial forecast of 0.1%.

These factors are contributing to strengthening the ECB's interest rate adjustment trend in the coming time, increasing pressure on the euro in the short term.

Euro exchange rate today 5/17/2025: Euro falls as US consumer inflation expectations rise higher

Domestic Euro exchange rate today 5/17/2025

The Euro exchange rate at the State Bank's buying and selling exchange center increased slightly, currently at: 26,570 VND - 29,367 VND.

In the "black market", the black market Euro exchange rate as of 4:30 a.m. on May 17, 2025 remained unchanged compared to yesterday, currently being bought at 26,224 VND/EUR and sold at 26,324 VND/EUR.

EUR exchange rates at commercial banks are as follows: