The euro traded around $1.16 as investors anticipated insights from European Central Bank speeches and awaited delayed US economic data due to the government shutdown. The market is particularly interested in the September employment report to guide expectations on Federal Reserve policy. Concerns remain about Eurozone inflation and potential economic headwinds.
- The euro was holding around $1.16.
- Investors are awaiting ECB speeches and US economic data.
- ECB Vice President de Guindos is confident in Eurozone inflation convergence.
- De Guindos cautioned about tariffs, sovereign debt, and market sentiment shifts.
- The European Commission raised its Eurozone growth forecast for 2025 to 1.3%.
- Eurozone growth for 2026 is expected to slow to 1.2%.
- Eurozone growth for 2027 is projected to rise to 1.4%.
The provided details suggest a mixed outlook for the Euro. While there’s confidence in inflation converging towards the target and a short-term boost in growth expected for 2025, potential risks loom. These risks are in the form of tariffs, sovereign debt issues, and the possibility of sudden shifts in market sentiment. The data delays further add uncertainty. The future performance of the asset will likely depend on upcoming economic data releases, central bank communications, and overall global economic conditions.