The euro traded lower against the US dollar on Thursday, staying within Wednesday’s range as markets waited for the European Central Bank’s policy decision. EUR/USD slipped towards 1.1130 after highs near 1.1170, with attention also on the 17-month low at 1.1113. European Commission sentiment signals were mixed: the Business Climate index rose to 0.09 in October from -0.05 in September, while Consumer Confidence held at -17.9 and the Economic Sentiment Index fell to 96.9 versus expectations of 97.5.
European Monetary Policy And Market Sentiment
The ECB was expected to keep the Deposit Facility rate unchanged at 2.5%, yet to retain a tightening bias as higher oil prices linked to the Middle East war add to inflation pressures above target. France’s public debt was in focus, with French Treasury yields at 24-year highs, complicating the policy backdrop. The Governing Council said President Christine Lagarde will step down in February 2027, with little market impact.
US Federal Reserve Developments
In the US, the Federal Reserve left rates unchanged, and the dollar eased after comments interpreted as dovish.
