Euro Ends October Down 1%
The euro ended the month around $1.12, posting a monthly decline of more than 1% against the USD and hovering near its lowest level in over a year. The currency remained under pressure from concerns over France's fiscal outlook and the European Central Bank's cautious approach to further monetary tightening. Eurozone growth data released on Friday showed a slowdown in economic activity in Q3, with France unexpectedly slipping into contraction as falling exports and investment weighed on output. Political unrest added to uncertainty, pushing French OAT yields to their highest levels in over two decades, while inflation remained persistent across the region. On Thursday, the ECB kept interest rates unchanged, while avoiding firm signals about the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to hold rates steady, pointing to tighter financial conditions as a factor helping to contain price pressures.
The euro ended the month around $1.12, posting a monthly decline of more than 1% against the USD and hovering near its lowest level in over a year. The currency remained under pressure from concerns over France's fiscal outlook and the European Central Bank's cautious approach to further monetary tightening. Eurozone growth data released on Friday showed a slowdown in economic activity in Q3, with France unexpectedly slipping into contraction as falling exports and investment weighed on output. Political unrest added to uncertainty, pushing French OAT yields to their highest levels in over two decades, while inflation remained persistent across the region.
On Thursday, the ECB kept interest rates unchanged, while avoiding firm signals about the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to hold rates steady, pointing to tighter financial conditions as a factor helping to contain price pressures.