FX.co ★ Euro Hovers at 2-Week Low

The euro fell to $1.15, marking its lowest point since early November, as investors evaluated recent PMI figures alongside dovish remarks from a Federal Reserve official, which bolstered expectations for decreased US interest rates. Preliminary data indicated that private sector activity in the Eurozone expanded robustly in November, slightly under the two-year high observed in October and generally aligning with forecasts. This supports the belief that the European Central Bank (ECB) will likely maintain its interest rates unchanged next year. Earlier this week, the European Commission raised its 2025 growth forecast for the Eurozone to 1.3% from an initial 0.9%, attributing the revision to a rise in exports to the US, driven by companies rushing to stockpile ahead of Trump's tariff policies. Growth is anticipated to decline to 1.2% in 2026 before rising to 1.4% in 2027. Additionally, sentiment was swayed by reports of potential advancements in a Ukrainian peace initiative, with suggestions that Washington and Moscow have discreetly considered a framework that would require Kyiv to relinquish the Donbas region and reduce its military presence.