The euro experienced a slight decline to $1.163 as investors are keenly awaiting insights from upcoming European Central Bank (ECB) speeches regarding future monetary policy. The ECB is entering a pre-meeting communication blackout before their next rate decision. Simultaneously, expectations are growing for both the ECB and the Federal Reserve to ease monetary policy, reflected in money market activity.
- The euro slipped to $1.163.
- Investors are focused on upcoming ECB speeches for policy outlook clues.
- The ECB enters its pre-meeting blackout period on Thursday.
- Money markets are pricing in a 25-basis-point ECB rate cut by July 2026.
The currency’s slight weakening reflects market anticipation of potential dovish signals from the ECB. The market’s expectation of future rate cuts indicates uncertainty surrounding the economic outlook, and the currency is likely to remain sensitive to any hints regarding the future direction of monetary policy. The forthcoming speeches will be crucial in shaping investor sentiment and potentially influencing the value of the asset.