The euro witnessed a decline on Wednesday against a basket of global currencies, continuing its losses for the second day in a row against the US dollar, moving away from its highest levels in three weeks, due to the activity of correction operations and profit-taking, as the euro fell against the dollar by 0.2% after it fell by 0.1% against the dollar yesterday, Tuesday.

Markets are awaiting the release of very important data on the main inflation levels in the major European countries and in the entire euro area, which will provide strong evidence about possible cuts in European interest rates this year.

The expected data is the consumer price index in Germany, the largest economy in the euro zone, tomorrow, Thursday, in addition to the consumer price index for the euro zone as a whole on Friday of this week.

These data will clarify the extent to which inflationary pressures have affected monetary policy makers in the European Central Bank, and will provide more clarity about the timing of starting to reduce European interest rates.

According to the minutes of the latest European Central Bank meeting, officials agreed that it was too early to discuss interest rate cuts, despite recent signs of easing inflationary pressures across the euro zone.

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