The euro remains steady at approx. $1.15 as traders balance stronger US data against expectations for a weaker dollar. Analysts say the euro’s outlook depends on upcoming Fed and ECB signals.
The euro remained steady around the $1.15 mark on Thursday, as investors balanced signs of resilience in the US economy with cautious optimism that Europe’s slowdown may be easing.
A stronger-than-expected US payrolls report and firm services data earlier this week helped to keep the dollar supported, limiting the euro’s ability to extend its recent rebound. Markets remain unsure how soon the Federal Reserve might begin lowering interest rates, keeping traders reluctant to shift decisively into the single currency.
At the same time, a Reuters survey of foreign-exchange strategists suggested that most investors remain net short on the dollar, a position that could give the euro modest room to rise if American data begins to soften or the Fed signals a policy shift.
In Europe, attention remains fixed on comments from European Central Bank officials, who have hinted that rate cuts are unlikely in the near term whilst inflation continues to ease only gradually. Some analysts say the euro’s next move will likely depend on whether the ECB signals greater confidence in growth prospects heading into 2026.
“The euro is holding its own, but conviction remains thin,” one London-based trader said. “Until we see clearer direction from the Fed or the ECB, EUR/USD will stay trapped in a narrow range.”
As of late Thursday, the pair was trading near 1.151 USD, up marginally on the day. Traders are now looking ahead to next week’s US inflation report and Eurozone industrial data for fresh clues on whether the balance of power between the two currencies might shift before year-end.
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Key Takeaways
- The euro is holding steady near $1.15 amid mixed economic signals.
- US data strength keeps the dollar supported for now.
- ECB caution and improving Eurozone sentiment could support the euro in the medium term.
- Markets await inflation updates to gauge central-bank timing on rate moves.
