Euro Climbs to One-Month High

2026-07-16 06:54 By Joana Ferreira 1 min. read

The euro rose above $1.145, hovering near its strongest level since June 19, as softer-than-expected US inflation data weighed on the dollar while investors increased bets on further European Central Bank policy tightening.

The ECB, which delivered its first rate hike in three years in June, is widely expected to raise rates again.

Markets fully price in a September hike, with another increase expected by spring 2027.

However, recent comments from policymakers including Piero Cipollone and Martin Kocher suggest a cautious approach, making a July move unlikely.

In the US, producer prices unexpectedly fell in June for the first time in nearly a year, while consumer prices posted their first decline since 2020, largely reflecting lower energy costs and easing pressure on the Federal Reserve to tighten policy this year.

Investors also continued to monitor escalating tensions in the Middle East following additional US strikes on Iranian targets.



News Stream
Euro Climbs to One-Month High
The euro rose above $1.145, hovering near its strongest level since June 19, as softer-than-expected US inflation data weighed on the dollar while investors increased bets on further European Central Bank policy tightening. The ECB, which delivered its first rate hike in three years in June, is widely expected to raise rates again. Markets fully price in a September hike, with another increase expected by spring 2027. However, recent comments from policymakers including Piero Cipollone and Martin Kocher suggest a cautious approach, making a July move unlikely. In the US, producer prices unexpectedly fell in June for the first time in nearly a year, while consumer prices posted their first decline since 2020, largely reflecting lower energy costs and easing pressure on the Federal Reserve to tighten policy this year. Investors also continued to monitor escalating tensions in the Middle East following additional US strikes on Iranian targets.
2026-07-16
Euro Eases as Middle East Tensions Weigh on Outlook
The euro traded near $1.14, retreating from a near one-month peak reached on Tuesday, as investors grappled with escalating Middle East tensions and surging oil prices. These factors have amplified concerns about inflation’s impact on monetary policy and economic growth. The US military's continued strikes on Iran, following President Donald Trump’s reinstatement of a blockade on Iranian shipping, have further disrupted energy flows, adding to market uncertainty. The European Central Bank, which raised interest rates for the first time in three years in June, is widely expected to tighten policy again. Markets now fully price in a September rate hike, with another increase anticipated by spring 2027. However, recent remarks from policymakers like Piero Cipollone and Martin Kocher signal caution, as they see no clear evidence of second-round inflation effects yet.
2026-07-15
Euro Rebounds as Dollar Weakens on Soft US Inflation
The euro climbed to $1.145, its strongest level since June 19, supported by broad dollar weakness after softer-than-expected US inflation data eased pressure on the Federal Reserve to raise rates this year. Investors also reacted to escalating Middle East tensions and rising oil prices, which fueled concerns about inflation’s impact on monetary policy and economic growth. The US military continued strikes against Iran after President Donald Trump reinstated a blockade on Iranian shipping, heightening uncertainty over energy flows. Markets responded by pricing in further European Central Bank rate hikes, with money markets now expecting a deposit rate of 2.70% by December (up from 2.25%) and fully anticipating a September increase.
2026-07-14