The euro ended the week just under $1.16 amid a flurry of economic data and central bank activity, accompanied by some easing of US-China trade concerns. Inflation in the Eurozone showed signs of moderation, while GDP growth modestly exceeded expectations despite uneven performance across member states. Central bank policies in both the Eurozone and the United States contributed to the currency’s positioning.
- The euro traded just below $1.16.
- Eurozone inflation eased to 2.1% in October 2025, down from 2.2% in September.
- GDP grew 0.2% in Q3, slightly above expectations.
- Spain and France experienced robust growth, while Germany and Italy remained largely flat.
- The ECB kept interest rates unchanged for a third consecutive meeting.
- The Federal Reserve cut rates by 25bps in October.
The collected data suggests a complex environment for the euro. While inflation is trending towards the ECB’s target and GDP growth is slightly positive, the uneven performance of major economies within the Eurozone presents challenges. The ECB’s decision to hold interest rates steady, coupled with the Federal Reserve’s cautious approach to further easing, likely contributes to the currency’s current stability. The mixed signals create uncertainty, potentially leading to a period of consolidation for the euro as the market awaits further developments.