Eurozone inflation rose to 2% in June, returning to the European Central Bank's (ECB) medium-term target from 1.9% in May. While core inflation, which strips out volatile food and energy, remained steady at 2.3%, services inflation edged up to 3.3%, pointing to persistent domestic price pressures. ECB President Christine Lagarde signalled the end of the current policy cycle, having already halved rates to 2% since last summer. The euro held firm, buoyed by its 14% gain this year against the dollar, which has helped reduce import costs and overall inflationary pressure. Despite temporary oil price spikes linked to Middle East tensions, markets expect no immediate shift in ECB policy, with only a 10% chance of a July rate cut priced in. Bond and currency markets were largely stable following the data.