Euro Stabilizes Above Recent Lows
The euro remained steady around $1.12, holding above the 17-month lows touched last week, as hawkish comments from ECB policymakers supported the single currency despite lingering concerns over France’s fiscal outlook, while uncertainty ahead of Tuesday’s US midterm elections weighed on the dollar. On Friday, ECB policymakers, including Bank of Italy Governor Fabio Panetta and Austrian central bank chief Martin Kocher, signaled that further rate hikes may be needed to contain inflation and prevent it from spilling over into wages. Their remarks followed the ECB’s decision to leave interest rates unchanged, despite President Christine Lagarde confirming that a rate hike had been discussed. Policymakers unanimously backed the hold, citing tighter financial conditions as a factor helping to curb inflationary pressures. Meanwhile, US voters head to the polls, with Democrats favored to regain control of the House of Representatives, while the outcome of the Senate race remains uncertain.
The euro remained steady around $1.12, holding above the 17-month lows touched last week, as hawkish comments from ECB policymakers supported the single currency despite lingering concerns over France’s fiscal outlook, while uncertainty ahead of Tuesday’s US midterm elections weighed on the dollar. On Friday, ECB policymakers, including Bank of Italy Governor Fabio Panetta and Austrian central bank chief Martin Kocher, signaled that further rate hikes may be needed to contain inflation and prevent it from spilling over into wages.
Their remarks followed the ECB’s decision to leave interest rates unchanged, despite President Christine Lagarde confirming that a rate hike had been discussed. Policymakers unanimously backed the hold, citing tighter financial conditions as a factor helping to curb inflationary pressures. Meanwhile, US voters head to the polls, with Democrats favored to regain control of the House of Representatives, while the outcome of the Senate race remains uncertain.