Euro falls to $1.15

The euro slipped to $1.15, its lowest level in roughly two weeks, weighed down by a stronger dollar as traders reduced expectations for a 25bps Fed rate cut in December.

The shift in sentiment followed the cancellation of the October employment report and FOMC minutes showing policymakers were divided over the need for further easing.

In contrast, the ECB is expected to keep interest rates unchanged through the end of 2026, with inflation hovering near its 2% target, stable economic growth, and unemployment at record lows.

The central bank left rates on hold in October for a third consecutive meeting. Meanwhile, the European Commission raised its Eurozone growth forecast for 2025 to 1.3%, up from 0.9% in its spring projections, citing a surge in exports to the United States as firms increased inventories ahead of Trump-era tariffs.

Growth is projected to ease to 1.2% in 2026, down from 1.4%, before edging up to 1.4% in 2027.