11.09.202513:15:23UTC+00Euro Rises Above $1.17 as Dollar Weakens, ECB Holds Rates Steady

On Thursday, the euro rose above $1.17, benefitting from a weakening dollar following recent U.S. inflation and jobless claims data that bolstered expectations for Federal Reserve rate cuts this year. Concurrently, the European Central Bank kept interest rates steady and shared its updated forecasts for economic growth and inflation. Policymakers maintained a neutral stance, considering factors like steady inflation, a robust economy, historically low unemployment, and uncertainties in global trade. The ECB now anticipates eurozone GDP will grow by 1.2% in 2025 (an increase from 0.9% predicted in June), before decelerating to 1.0% in 2026. The growth forecast for 2027 remains at 1.3%. Inflation projections have been marginally increased: 2.1% for 2025 (up from a previous 2.0%), 1.7% for 2026 (up from 1.6%), while it is adjusted to 1.9% for 2027 (from 2.0%). Officials reiterated that monetary policy decisions will be based on ongoing data analysis, with no predetermined course for rate changes.