FX.co ★ Euro Steady as Investors Eye ECB Speeches and US Data

As the week commences quietly, the euro maintains its position around $1.16, as investors look forward to upcoming speeches from the European Central Bank and await key economic data from the US, which has been delayed due to a government shutdown. This data includes the much-anticipated September employment report, which will provide insights into Federal Reserve policy. Earlier today, ECB Vice President Luis de Guindos expressed optimism about Eurozone inflation aligning with the bank’s target, though he also highlighted concerns regarding tariffs, sovereign debt, and the potential risks posed by sudden shifts in market sentiment. In a related development, the European Commission has revised its Eurozone growth forecast for 2025 upwards to 1.3%, compared to a previous 0.9% estimate made in the spring, attributing this to an increase in exports to the US as firms built inventory in anticipation of Trump-era tariffs. However, growth forecasts suggest a deceleration to 1.2% in 2026, down from an earlier prediction of 1.4%, with expectations of a rebound to 1.4% in 2027.