Euro-Zone inflation slowed, reinforcing expectations that the ECB is nearing its 2% target as rate cuts continue. Consumer prices rose 2.4% in February, down from 2.5% in January, slightly above economists' forecasts. Services inflation, a key focus for policymakers, eased to 3.7%, marking its first drop below 4% since April 2024. The euro gained 0.6% to $1.0439, while German bond yields climbed. Analysts expect a 25 bps rate cut in March, with further reductions likely. However, the ECB remains divided as officials weigh economic risks against controlling inflation.