10.09.202507:47:45UTC+00Euro Holds Near $1.17 Ahead of ECB Decision and US Inflation Data

The euro hovered around $1.17 as investors anticipated the European Central Bank (ECB) meeting on Thursday and awaited forthcoming US inflation data for insights into monetary policy directions. It is generally expected that ECB officials will maintain interest rates steady for a second meeting in a row, amid persistent trade uncertainties and eurozone inflation remaining stable at target levels for the third consecutive month. In the US, inflation is anticipated to have increased to 2.9% in August, up from 2.7% in July, marking the highest rate since January. Last week's weaker labor market figures have fueled expectations for a Federal Reserve rate cut in September, with the markets considering the likelihood of a more significant adjustment than usual, depending on the inflation results. Politically, French President Emmanuel Macron has appointed Sébastien Lecornu as the new prime minister, succeeding François Bayrou, who was ousted following a parliamentary confidence vote over budget proposals.