Euro Near 2025 Lows Ahead of ECB Rate Decision
The euro traded below $1.115, hovering near its lowest level since April 2025, as investors awaited the European Central Bank’s policy announcement. Sentiment remained under pressure amid France’s deteriorating fiscal outlook and growing concerns in bond markets. The ECB is widely expected to leave interest rates unchanged amid signs of slowing economic growth, keeping attention on its forward guidance. Friday’s eurozone GDP data are expected to show weaker growth, reflecting headwinds from summer heatwaves, low water levels in major waterways, and rising global bond yields. Meanwhile, inflation signals remain mixed, with Germany’s fuel-tax rebate and easing price pressures in Spain expected to help moderate inflation. In the US, the Federal Reserve also kept rates unchanged on Wednesday, as anticipated. Markets are now pricing in the possibility of rate hikes from both the ECB and the Fed in December.
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The euro traded below $1.115, hovering near its lowest level since April 2025, as investors awaited the European Central Bank’s policy announcement. Sentiment remained under pressure amid France’s deteriorating fiscal outlook and growing concerns in bond markets. The ECB is widely expected to leave interest rates unchanged amid signs of slowing economic growth, keeping attention on its forward guidance. Friday’s eurozone GDP data are expected to show weaker growth, reflecting headwinds from summer heatwaves, low water levels in major waterways, and rising global bond yields.
Meanwhile, inflation signals remain mixed, with Germany’s fuel-tax rebate and easing price pressures in Spain expected to help moderate inflation. In the US, the Federal Reserve also kept rates unchanged on Wednesday, as anticipated. Markets are now pricing in the possibility of rate hikes from both the ECB and the Fed in December.