Euro Hits 7-Week High

2025-12-03 12:13 By Joana Ferreira 1 min. read

The euro climbed above $1.165, reaching its strongest level since mid-October, supported by an upward revision to November’s Eurozone composite PMI and diverging monetary policy expectations between the ECB and the Fed.

The HCOB Eurozone Composite PMI rose to 52.8, exceeding the preliminary estimate of 52.4, marking the strongest expansion in private-sector activity since May 2023, driven largely by renewed momentum in the services sector.

Earlier this week, Eurozone inflation edged up to 2.2% in November from 2.1% in October, slightly above market forecasts.

The combination of resilient economic activity and inflation near target suggests the European Central Bank is likely to hold interest rates steady through 2026.

In contrast, the Federal Reserve is expected to cut rates by 25 basis points this month, with two further reductions projected for next year, supporting the euro’s advance against the dollar.



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