The euro held around $1.16 at the start of a quiet week, with investors awaiting European Central Bank speeches and key US economic data delayed by the government shutdown, including September’s employment report, for guidance on Federal Reserve policy.
Earlier on Monday, ECB Vice President Luis de Guindos expressed confidence that Eurozone inflation will converge toward the bank’s target, but cautioned about tariffs, sovereign debt, and the risks of a sudden shift in market sentiment.
Meanwhile, the European Commission raised its Eurozone growth forecast for 2025 to 1.3%, up from 0.9% in its spring outlook, citing a surge in exports to the US as companies stocked up ahead of Trump-era tariffs.
Growth is then expected to slow to 1.2% in 2026, down from 1.4%, before rising to 1.4% in 2027.