The euro remained stable around $1.16 as investors anticipated insights from European Central Bank (ECB) speeches and were kept waiting for delayed US economic data due to the government shutdown. ECB Vice President Luis de Guindos voiced optimism about Eurozone inflation converging towards the ECB’s target, while also highlighting potential risks from tariffs, sovereign debt, and market sentiment shifts. The European Commission revised its Eurozone growth projections upward for 2025, anticipating a surge in exports to the US.
- The euro held steady around $1.16.
- Investors are awaiting ECB speeches and delayed US economic data.
- ECB Vice President Luis de Guindos is confident in Eurozone inflation convergence.
- Guindos cautioned about tariffs, sovereign debt, and market sentiment.
- The European Commission raised its Eurozone growth forecast for 2025 to 1.3%.
- Eurozone growth is expected to slow to 1.2% in 2026 before rising to 1.4% in 2027.
The euro is currently in a state of watchfulness, with its value holding relatively firm. Economic forecasts suggest positive, albeit potentially short-lived, growth spurred by external demand, while various factors present potential headwinds. Central bank rhetoric and future data releases are critical to understanding the direction of the currency, especially regarding inflationary pressures and broader economic risks.