The Euro remains strong, hovering near recent highs against the dollar. Investor sentiment is optimistic due to potential resolution of the US government shutdown. Attention is focused on upcoming remarks from European Central Bank (ECB) and Federal Reserve (Fed) officials, with the ECB expected to maintain current interest rates given a stable economy and inflation.
- The euro held above $1.155, near its strongest level since late October.
- Investors hope the US government shutdown may soon end.
- Investors await remarks from ECB and Fed officials for further policy guidance.
- The ECB is widely expected to keep interest rates steady.
- Money markets are assigning only a 40% probability of a rate cut by September 2026.
- ECB Vice President Luis de Guindos said policy rates are currently appropriate.
- De Guindos stressed the need for the ECB to remain “very prudent and cautious.”
The Euro’s resilience suggests a positive outlook, supported by expectations of consistent monetary policy from the ECB. This stability is attracting investors seeking refuge from potential US economic uncertainties, reinforcing the Euro’s value in the currency market.