Euro Near 2-Month Lows, ECB Eyed

2026-06-11 08:08 By Joana Taborda 1 min. read

The euro was little changed around $1.15, hovering near its lowest level in more than two months as broad USD strength continued to weigh on the common currency.

The dollar remained supported by tensions in the Middle East, with repeated military strikes and diplomatic setbacks clouding the prospects for a resolution between the US and Iran.

Investors are also awaiting the ECB's monetary policy decision, with the central bank expected to raise interest rates by 25bps, marking its first rate hike since 2023.

Such a move would lift the deposit facility rate to 2.25%.

The expected increase comes as inflationary pressures intensify following the energy shock triggered by the conflict with Iran, while the ECB's updated economic projections are likely to point to further inflation acceleration in the months ahead.

Market participants will also closely scrutinize the central bank's forward guidance, with expectations that policymakers could deliver at least one additional rate hike this year.



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Euro Near 2-Month Lows, ECB Eyed
The euro was little changed around $1.15, hovering near its lowest level in more than two months as broad USD strength continued to weigh on the common currency. The dollar remained supported by tensions in the Middle East, with repeated military strikes and diplomatic setbacks clouding the prospects for a resolution between the US and Iran. Investors are also awaiting the ECB's monetary policy decision, with the central bank expected to raise interest rates by 25bps, marking its first rate hike since 2023. Such a move would lift the deposit facility rate to 2.25%. The expected increase comes as inflationary pressures intensify following the energy shock triggered by the conflict with Iran, while the ECB's updated economic projections are likely to point to further inflation acceleration in the months ahead. Market participants will also closely scrutinize the central bank's forward guidance, with expectations that policymakers could deliver at least one additional rate hike this year.
2026-06-11
Euro Holds Steady as Middle East Tensions Weigh
The euro stabilized at $1.154, remaining close to its weakest level in over two months, as Middle East tensions escalated, with the US and Iran exchanging fresh strikes. President Donald Trump stated that Iran is taking "too long" to negotiate a peace deal and will now "pay the price," while Iranian Parliament Speaker Mohammad Bagher Ghalibaf declared on Wednesday that Tehran would respond "decisively and without delay" to any aggression. Investors are also preparing for the European Central Bank’s policy meeting on Thursday, where a 25-basis-point rate hike, the first move in a year, is widely anticipated, as the Israel-Iran conflict sparked an energy crisis and increased inflationary pressures. Markets will closely watch President Lagarde’s press conference for signals on future policy direction.
2026-06-10
Euro Edges Up as ECB Rate Hike Looms
The euro rose slightly to $1.154, attempting to rebound from over two-month lows, as easing Israel-Iran tensions temporarily reduced fears that weekend attacks could derail US-led Middle East peace efforts. Attention now turns to the European Central Bank’s Thursday policy meeting, where a 25-basis-point rate hike, the first move in a year, is widely anticipated, following the conflict’s impact on energy prices and inflation. Markets will also parse President Lagarde’s press conference for clues on further action. This expected hike follows euro-area inflation reaching its highest level in over two and a half years. Money markets are pricing in about 70 basis points of tightening by year-end, implying one more quarter-point increase and a greater than 70% chance of a third.
2026-06-09