FX.co ★ Euro Falls to Fresh Three-Month Low

At the beginning of November, the euro continued its decline, nearing the $1.15 mark, and reaching new three-month lows. Investors are evaluating recent key policy decisions and the interest rate outlook. Although manufacturing activity in the Eurozone showed stabilization in October, it provided minimal support for the currency. The European Central Bank opted to keep interest rates unchanged but retained a fairly optimistic growth outlook for the region while maintaining its inflation projection. Recent data indicated that inflation in the Eurozone had decreased to just above the ECB's 2% target. Third-quarter GDP growth surpassed expectations, and business surveys in October pointed to improved sentiment. Concurrently, the US dollar gained strength as traders reduced their expectations for further rate cuts from the Federal Reserve, especially after Chair Jerome Powell indicated that additional easing in December is "not a foregone conclusion."