Euro Steadies Above $1.17 Ahead of Key Economic Data

2026-04-27 07:38 By Joana Ferreira 1 min. read

The euro strengthened above $1.17, recovering from two-week lows recorded last week, as investors await a busy week of economic releases, including Eurozone inflation and GDP data, and global interest rate decisions.

Eurozone inflation is expected to hit 2.9% in April, the highest since December 2023, fueled by surging energy prices tied to the Middle East conflict.

At the same time, the European Central Bank is likely to keep rates unchanged at its Thursday meeting, adopting a wait-and-see approach amid evolving macroeconomic and geopolitical conditions.

Markets still anticipate two quarter-point rate hikes in 2026, with a potential third by year-end.

Meanwhile, reports indicate that Iran has submitted a new proposal to the US aimed at reopening the Strait of Hormuz following US President Donald Trump’s announcement over the weekend that he canceled a planned trip by US envoys to Pakistan for talks with Iran.



News Stream
Euro Steadies Above $1.17 Ahead of Key Economic Data
The euro strengthened above $1.17, recovering from two-week lows recorded last week, as investors await a busy week of economic releases, including Eurozone inflation and GDP data, and global interest rate decisions. Eurozone inflation is expected to hit 2.9% in April, the highest since December 2023, fueled by surging energy prices tied to the Middle East conflict. At the same time, the European Central Bank is likely to keep rates unchanged at its Thursday meeting, adopting a wait-and-see approach amid evolving macroeconomic and geopolitical conditions. Markets still anticipate two quarter-point rate hikes in 2026, with a potential third by year-end. Meanwhile, reports indicate that Iran has submitted a new proposal to the US aimed at reopening the Strait of Hormuz following US President Donald Trump’s announcement over the weekend that he canceled a planned trip by US envoys to Pakistan for talks with Iran.
2026-04-27
Euro Rebounds Above $1.17 on US-Iran Talk Hopes
The euro climbed back above $1.17, attempting to rebound from two-week lows, as renewed optimism surrounded potential progress in US-Iran peace negotiations. Iranian Foreign Minister Abbas Araghchi is expected to arrive in Islamabad tonight, according to Al-Jazeera, which cited Pakistani government sources suggesting a "high likelihood of a breakthrough" in the talks between the US and Iran. Investors are also focusing on the upcoming April European Central Bank policy meeting, where policymakers are widely expected to maintain interest rates. The ECB is taking a wait-and-see stance to evaluate the impact of recent macroeconomic data and geopolitical developments, particularly the Middle East conflict, against its earlier forecasts. Despite this cautious approach, money markets are fully pricing in two quarter-point rate hikes for 2026, with a chance of a third increase by the end of the year.
2026-04-24
Euro Slides to Two-Week Low on US-Iran Standoff
The euro held just below $1.17, its weakest level in two weeks, and is on track for a 0.7% weekly decline against the US dollar. The drop reflects renewed market unease as US-Iran negotiations stall and the Strait of Hormuz remains effectively closed, dashing earlier hopes of a diplomatic breakthrough to end the conflict. Attention now shifts to next Thursday’s European Central Bank policy meeting, where policymakers are expected to hold interest rates steady. The ECB is adopting a wait-and-see approach to assess the impact of recent macroeconomic data and geopolitical developments, particularly the Middle East conflict, against its earlier projections. Despite this caution, money markets are fully pricing in two quarter-point rate hikes in 2026, with a 55% probability assigned to a third increase by year-end.
2026-04-24