Euro Hits 4-week High

EURUSD increased to 1.13, the highest since October 2026. Over the past 4 weeks, Euro US Dollar gained 0.42%, and in the last 12 months, it decreased 1.94%.

The euro extended its gains to $1.125, reaching its strongest level since early October, as investors digested accelerating eurozone inflation while an unexpected sweeping Democratic victory in the US midterm elections weighed on the dollar. Eurozone annual inflation accelerated to 4.0% in October, its highest level since September 2023 and well above the ECB’s 2% target, mainly driven by an energy cost surge. The single currency has also drawn support from increasingly hawkish rhetoric among European Central Bank policymakers. Despite last week’s decision to leave interest rates unchanged, officials signaled that further rate increases may be necessary to contain inflationary pressures and prevent them from spilling over into wages, reinforcing expectations of a tighter monetary policy stance. Meanwhile, the unexpected US election outcome added to pressure on the dollar, while AI stocks and cryptocurrencies also declined amid concerns over tighter regulatory scrutiny.

The euro rose to $1.124, reaching its strongest level since early October, as investors dumped the US dollar following a sweeping Democratic victory in the midterm elections, with Democrats securing control of both chambers of Congress. The unexpected political shift weighed on the dollar, while AI stocks and cryptocurrencies also fell amid concerns over tighter regulatory scrutiny. Meanwhile, the euro has also drawn support from increasingly hawkish rhetoric among European Central Bank policymakers. Despite last week's decision to leave interest rates unchanged, ECB officials signaled that further rate increases may be necessary to contain inflationary pressures and prevent them from feeding through into wages, reinforcing expectations of a tighter monetary policy stance.