FX.co ★ Euro Little Changed Around $1.17

By late September, the euro had fallen below the $1.17 mark, erasing gains it had made since reaching its peak earlier in the month. It appeared poised to end September with little overall change as traders assessed the implications of monetary policy against the backdrop of renewed trade tensions. The market still anticipates that the Federal Reserve will implement at least two further cuts of 25 basis points each this year, despite recent data underscoring the strength of the U.S. economy and labor market. In contrast, in Europe, there is an expectation that the European Central Bank is concluding its period of monetary easing, having kept rates steady for the second consecutive meeting in September. Economic indicators from the region present a mixed scenario, with recovery signs in the services sector PMIs, whereas the downturn in the manufacturing sector worsens. On the trade front, U.S. President Trump announced the imposition of a 100% tariff on branded or patented pharmaceutical products. However, the European Commission negotiated a cap, ensuring US tariffs on pharmaceuticals would not exceed 15%. Furthermore, reports indicate the EC is preparing to levy tariffs ranging from 25% to 50% on imports of Chinese steel.