The euro traded steadily around $1.12, holding above the 17‑month low reached last week, as hawkish signals from European Central Bank officials lent support to the single currency despite persistent concerns over France’s fiscal position. At the same time, uncertainty ahead of Tuesday’s US midterm elections pressured the dollar.
On Friday, several ECB policymakers, including Bank of Italy Governor Fabio Panetta and Austrian central bank chief Martin Kocher, indicated that additional interest rate hikes may still be necessary to rein in inflation and prevent it from feeding into wage growth. Their comments came after the ECB opted to keep rates unchanged, even as President Christine Lagarde acknowledged that a rate increase had been on the table. Policymakers unanimously supported the decision to hold, arguing that already tighter financial conditions are helping to ease inflationary pressures.
In the United States, voters are heading to the polls for the midterm elections, with Democrats seen as favored to regain control of the House of Representatives, while the outcome in the Senate remains uncertain.
