Euro futures faced downward pressure as the June Euro currency futures contract moved toward its largest percentage decline since March 3. The contract fell 0.81% near the close, marking its fourth lower close in the last five sessions. A key driver behind the currency's movement is the shifting U.S.-EU interest rate differential, which narrowed from over 200 points to roughly 150 bps following late 2025 Fed cuts. Traders are closely watching the upcoming June 11 ECB policy decision, where markets have priced in a 90% probability of a 25 bps rate hike amid hot May Eurozone inflation numbers showing a 3.2% print. However, the U.S. dollar continues to cap the euro's upside potential as strong domestic data leads market participants to price in an additional Fed rate hike before year-end.