FX.co ★ Euro Hits Three-Month Low

The Euro has continued its descent, reaching $1.15, marking its lowest level since July. This decrease is largely attributed to the strong performance of the dollar as investors keep a close eye on the direction of monetary policy from both the European Central Bank (ECB) and the Federal Reserve (Fed). As anticipated, the ECB has opted to keep interest rates unchanged for the third consecutive meeting, highlighting that while the inflation outlook is generally stable and the economy is growing, uncertainties remain. Just as in previous months, ECB policymakers have reaffirmed their commitment to a "data-dependent, meeting-by-meeting approach" regarding monetary policy. It is widely anticipated by the market that there will be no additional moves from the ECB this year. Economically, the Eurozone saw a 0.2% increase in GDP during the third quarter, outperforming the forecast of 0.1%, with unemployment rates remaining close to all-time lows. Inflation displayed mixed signals, showing a slowdown in Germany, but a rise in Spain. In the United States, the Fed reduced rates by 25 basis points in October as expected, but Fed Chair Jerome Powell expressed caution about further rate cuts, emphasizing that a December rate cut should not be assumed.