Euro Hits 18-month Low

EURUSD decreased to 1.11, the lowest since May 2025. Over the past 4 weeks, Euro US Dollar lost 1.17%, and in the last 12 months, it decreased 4.87%.

The euro extended its decline, sliding below the $1.11 level and touching its weakest point since March 2025, as the dollar remained supported by growing expectations of further Federal Reserve tightening in December. Meanwhile, the recent decline in oil prices lost momentum, with Brent crude stabilizing following shipping attacks in the Strait of Hormuz. Markets continued to digest hotter-than-expected US inflation data, which strengthened expectations of another Fed rate increase next month and raised the prospect of a more aggressive 50bp hike. In Europe, persistent political and fiscal uncertainty in France, coupled with concerns over a weakening growth outlook and speculation surrounding the succession to the ECB presidency, further weighed on sentiment. On the policy front, ECB Chief Economist Philip Lane suggested that another rate increase in December could be warranted, adding to the growing number of policymakers expressing support for a third rate hike this year.

The euro extended its decline, falling below the $1.115 level and approaching its October multi-month lows, as the US dollar remained supported by expectations of further Federal Reserve tightening in December. The recent decline in oil prices also lost momentum, with Brent crude stabilizing following shipping attacks in the Strait of Hormuz. Meanwhile, markets continued to assess hotter-than-expected US inflation data, which reinforced expectations of another Fed rate increase in December and raised the possibility of a 50-basis-point hike. In Europe, persistent political and fiscal challenges in France, alongside uncertainty surrounding the possibility of an early departure by ECB President Christine Lagarde, continued to undermine market sentiment. On the monetary policy front, ECB Chief Economist Philip Lane indicated that another rate increase in December could be justified, adding to the growing number of policymakers signaling support for a third rate hike this year.