Euro Rebounds From 17-Month Lows

2026-11-02 09:02 By Joana Ferreira 1 min. read

The euro climbed back above $1.12, attempting to recover from 17-month lows, as renewed declines in oil prices and uncertainty surrounding Tuesday’s US midterm elections weighed on the US dollar.

The recovery came despite persistent concerns over France’s fiscal outlook, following Fitch Ratings’ decision to revise the country’s outlook to negative in an unscheduled review last week.

Oil prices fell after reports suggested US President Donald Trump was willing to give diplomatic efforts with Iran more time before considering renewed military strikes following Tuesday’s midterm elections, which could reshape the balance of power in Congress.

Meanwhile, the ECB kept interest rates unchanged on Thursday, offering little guidance on the future policy path.

President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to maintain borrowing costs, citing tighter financial conditions as one factor helping to contain inflationary pressures.



News Stream
Euro Rebounds From 17-Month Lows
The euro climbed back above $1.12, attempting to recover from 17-month lows, as renewed declines in oil prices and uncertainty surrounding Tuesday’s US midterm elections weighed on the US dollar. The recovery came despite persistent concerns over France’s fiscal outlook, following Fitch Ratings’ decision to revise the country’s outlook to negative in an unscheduled review last week. Oil prices fell after reports suggested US President Donald Trump was willing to give diplomatic efforts with Iran more time before considering renewed military strikes following Tuesday’s midterm elections, which could reshape the balance of power in Congress. Meanwhile, the ECB kept interest rates unchanged on Thursday, offering little guidance on the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to maintain borrowing costs, citing tighter financial conditions as one factor helping to contain inflationary pressures.
2026-11-02
Euro Ends October Down More Than 1%
The euro ended the month around $1.12, posting a monthly decline of more than 1% against the USD and hovering near its lowest level in over a year. The currency remained under pressure from concerns over France's fiscal outlook and the European Central Bank's cautious approach to further monetary tightening. Eurozone growth data released on Friday showed a slowdown in economic activity in Q3, with France unexpectedly slipping into contraction as falling exports and investment weighed on output. Social unrest added to uncertainty, pushing French OAT yields to their highest levels in over two decades, while inflation remained persistent across the region. On Thursday, the ECB kept interest rates unchanged, while avoiding firm signals about the future policy path. President Christine Lagarde confirmed that a rate hike had been discussed, but policymakers unanimously opted to hold rates steady, pointing to tighter financial conditions as a factor helping to contain price pressures.
2026-10-30
Euro Rebounds as Lagarde Signals December Hike
The euro erased an earlier 0.4% decline, recovering from its weakest level since May 2025 to trade slightly higher at $1.116 after European Central Bank President Christine Lagarde revealed that an interest rate hike was discussed today and signaled another increase in December remains likely, with markets pricing in over an 80% chance of a move. Lagarde also announced that she intends to leave the ECB early, citing a desire for “greater freedom” to express views on issues beyond monetary policy. The ECB left interest rates unchanged, flagging upside inflation risks from energy prices, while Lagarde’s emphasis on stable underlying inflation and tighter financial conditions was seen by some economists as dovish. Addressing concerns over France, Lagarde said the ECB has the tools to counter unwarranted market movements. However, she noted that bond yields are rising globally and warned that highly indebted countries must prepare for higher borrowing costs.
2026-10-29