Diverging signals about monetary policy from the European Central Bank and Federal Reserve this week have set the euro on a clear path for further weakness.

There is a persistent murmur in financial markets that the Trump administration may push through a grand bargain to weaken the overvalued U.S. dollar. But there are multiple problems here, not least Europe's likely unwillingness to play ball.

Euro zone manufacturers are more worried about cheap imports from China than tariffs from the United States, a European Central Bank survey showed on Friday.

The European Central Bank may stop describing its monetary policy stance as “restrictive” at its next decision in March, according to people familiar with the Governing Council’s debate.

Despite still elevated domestic inflation, weak growth and inflation projected at target this year strengthen the case for further rate cuts.

During the press conference, ECB President Christine Lagarde indicated that the central bank's macro assessment had hardly changed from its December meeting. The ECB still sees the disinflationary process on track and expects a pick up in demand, though it acknowledges the near-term weakness of the eurozone economy.

ECB cuts the deposit rate by a quarter point to 2.75 per cent as expected and offers little shift in tone from December as it continues to move policy away from restrictive territory

The ECB (European Central Bank) continued policy normalisation today, with another 25 basis points (bps) worth of cuts across all three benchmark rates. This marks the fourth consecutive rate reduction, bringing the Deposit Facility Rate, the Refinancing Rate, and the Marginal Lending Facility Rate to 2.75%, 2.90%, and 3.15%, respectively.

EUR/USD declines to near 1.0370 as inflation in six states of Germany decelerates in January.

Inflation fell in five important German states in January, preliminary data showed on Friday, suggesting Germany's national inflation rate could decline this month, although it was expected to remain unchanged.

Inflation came in below the ECB’s 2% target, a spot of relief for French policymakers contending with budget deficit woes.