31.10.202514:09:18UTC+00Euro Slips to 3-Month Low

The euro edged closer to the $1.15 mark, reaching its lowest point since late July, as investors digested comments from various European Central Bank (ECB) officials and interpreted their significance for future monetary policy. ECB policymaker François Villeroy de Galhau remarked that the bank's monetary policy is well-calibrated but remains flexible enough to adapt if risks escalate. This statement came after the ECB opted to maintain interest rates for the third consecutive meeting. President Christine Lagarde emphasized that the current policy is favorable, hinting at a restrained approach to further easing following eight quarter-point cuts up until June. Other ECB officials have expressed a desire for patience regarding interest rate adjustments, reflecting confidence in the current policy trajectory. Recent data highlighted that inflation in the Eurozone has moderated to slightly above the ECB’s 2% target, while third-quarter GDP growth surpassed expectations, and October's business surveys showed improved economic sentiment. Concurrently, the US dollar gained strength as traders reduced expectations for additional interest rate cuts by the Federal Reserve.