Euro Slightly below $1.18 amid mixed PMI data and ECB outlook

The euro edged lower, trading just below $1.18, as investors digested mixed PMI data and weighed potential implications for the ECB’s policy path.

The HCOB Eurozone Composite PMI rose slightly to 51.2 in September, broadly in line with expectations of 51.1, signaling the fastest expansion in the bloc’s private sector in 16 months.

Services growth outperformed forecasts, while the manufacturing sector slipped back into contraction, falling short of expectations.

By country, French data disappointed, whereas German figures came in stronger than anticipated.

The ECB recently indicated that its rate-cutting cycle may be over, citing persistent inflation risks tied to tariffs, services, food prices, and fiscal policy.

Market attention now turns to a series of speeches from ECB and Federal Reserve officials for further guidance.