Euro Slips Below $1.16 on Mixed EU Data

2025-11-28 10:27 By Joana Ferreira 1 min. read

The euro edged slightly below $1.16 in the final session of the month as investors absorbed a wave of economic data and weighed its implications for the European Central Bank’s policy path.

In Germany, retail sales fell 0.3% in October, missing expectations for a 0.2% rise and underscoring ongoing weakness in domestic demand amid elevated uncertainty.

Inflation was unchanged at 2.3% in November, while the EU-harmonized rate accelerated to 2.6%, its highest since February.

Elsewhere in the euro area, inflation in France and Italy remained steady and below forecasts, while Spain’s rate eased less than anticipated.

The data, combined with ECB meeting minutes indicating policymakers see little urgency to cut rates, left market expectations largely unchanged, with investors still projecting no rate adjustments through 2026.

Across the Atlantic, softer US economic indicators and dovish comments from several Fed officials bolstered expectations of a third Fed rate cut in December.



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