Euro Rebounds From 17-Month Lows
The euro climbed back above $1.12, attempting to recover from 17-month lows, as renewed declines in oil prices and uncertainty surrounding Tuesday’s US midterm elections weighed on the US dollar. The recovery came despite persistent concerns over France’s fiscal outlook, following Fitch Ratings’ decision to revise the country’s outlook to negative in an unscheduled review last week. Oil prices fell after reports suggested US President Donald Trump was willing to give diplomatic efforts with Iran more time before considering renewed military strikes following Tuesday’s midterm elections, which could reshape the balance of power in Congress. Meanwhile, the ECB kept interest rates unchanged on Thursday, offering little guidance on the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to maintain borrowing costs, citing tighter financial conditions as one factor helping to contain inflationary pressures.
The euro climbed back above $1.12, attempting to recover from 17-month lows, as renewed declines in oil prices and uncertainty surrounding Tuesday’s US midterm elections weighed on the US dollar. The recovery came despite persistent concerns over France’s fiscal outlook, following Fitch Ratings’ decision to revise the country’s outlook to negative in an unscheduled review last week. Oil prices fell after reports suggested US President Donald Trump was willing to give diplomatic efforts with Iran more time before considering renewed military strikes following Tuesday’s midterm elections, which could reshape the balance of power in Congress.
Meanwhile, the ECB kept interest rates unchanged on Thursday, offering little guidance on the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to maintain borrowing costs, citing tighter financial conditions as one factor helping to contain inflationary pressures.