The euro weakened to a multi-week low against the dollar as investors digested PMI figures, dovish comments from a Federal Reserve official, and reports regarding potential progress in Ukraine peace talks. This movement occurred despite a slightly lower but still robust expansion of Eurozone private-sector activity and an upward revision of the Eurozone’s 2025 growth forecast by the European Commission.
- The euro slipped to $1.15, its weakest level since early November.
- Dovish signals from a Federal Reserve official raised expectations for lower US interest rates.
- Eurozone private-sector activity grew robustly in November, slightly below October’s high but in line with expectations.
- The European Commission upgraded its Eurozone growth forecast for 2025 to 1.3% from 0.9%.
- Reports suggest potential progress toward a Ukraine peace plan, with claims that Washington and Moscow have quietly explored a framework.
The confluence of factors suggests a complex environment for the euro. While Eurozone economic activity appears reasonably healthy and growth forecasts have been revised upward, external factors like potential US interest rate cuts and geopolitical developments exert downward pressure. The interplay between these domestic strengths and international uncertainties likely influences the euro’s valuation.