Euro holds near $1.17 ahead of ECB and US inflation

The euro hovered near $1.17 as traders awaited Thursday’s ECB meeting and fresh US inflation data for signals on monetary policy.

ECB officials are widely expected to keep rates on hold for a second straight meeting, with trade tensions persisting and eurozone inflation holding at target for the third month in a row.

In the US, weaker labor market figures last week strengthened expectations for a Federal Reserve rate cut in September, with markets increasingly betting on the possibility of an outsized move depending on the inflation print.

On the political stage, French President Emmanuel Macron appointed Sébastien Lecornu as prime minister after François Bayrou was ousted in a parliamentary confidence vote over budget plans.

Meanwhile, US President Donald Trump has reportedly urged the EU to impose tariffs of up to 100% on India and China as part of a strategy to pressure Russia to end its war in Ukraine.