FX.co ★ Euro Steady Near $1.16

The euro hovered just below $1.16 at the conclusion of a week characterized by significant economic data releases, central bank meetings, and a softening of US–China trade tensions. Eurozone inflation edged down to 2.1% in October 2025, a slight decline from 2.2% in September, aligning it more closely with the European Central Bank's 2% target. Among the major economies, Germany, France, and Italy experienced easing price pressures, while Spain saw a slight increase in its Consumer Price Index (CPI). The GDP advanced by 0.2% in the third quarter, slightly surpassing expectations, propelled by strong growth in Spain and France. In contrast, the economies of Germany and Italy showed minimal change. Regarding monetary policy, the European Central Bank maintained interest rates for the third consecutive meeting, observing that the inflation outlook remains generally stable. Concurrently, the Federal Reserve reduced rates by 25 basis points in October, a move anticipated by the markets, though Chair Jerome Powell acknowledged a cautious approach toward further easing, emphasizing that a rate cut in December is not assured.