Euro Near Multi-Month Lows Ahead of ECB Decision
The euro traded little changed at around $1.12, hovering near multi-month lows as investors awaited the European Central Bank’s policy decision and a series of key inflation and GDP releases across the region, while France’s worsening fiscal outlook and bond-market pressures continued to weigh on sentiment. The ECB is widely expected to keep interest rates unchanged this week amid signs of slowing economic momentum, leaving investors focused on its forward guidance. GDP data due Friday are expected to show weaker eurozone growth, reflecting headwinds including summer heat waves, low water levels in major waterways and a surge in global bond yields. Meanwhile, the inflation picture remains mixed, with a German fuel-tax rebate and easing Spanish inflation expected to temper price pressures. Across the Atlantic, the US Federal Reserve is also widely expected to leave rates unchanged this week. Markets are currently pricing in rate hikes from both central banks only in December.
The euro traded little changed at around $1.12, hovering near multi-month lows as investors awaited the European Central Bank’s policy decision and a series of key inflation and GDP releases across the region, while France’s worsening fiscal outlook and bond-market pressures continued to weigh on sentiment. The ECB is widely expected to keep interest rates unchanged this week amid signs of slowing economic momentum, leaving investors focused on its forward guidance. GDP data due Friday are expected to show weaker eurozone growth, reflecting headwinds including summer heat waves, low water levels in major waterways and a surge in global bond yields.
Meanwhile, the inflation picture remains mixed, with a German fuel-tax rebate and easing Spanish inflation expected to temper price pressures. Across the Atlantic, the US Federal Reserve is also widely expected to leave rates unchanged this week. Markets are currently pricing in rate hikes from both central banks only in December.