The euro traded just above $1.17 on Monday, holding near last week’s four-year peak of $1.192 as investors awaited the HCOB flash PMI survey and key policy signals from the European Central Bank (ECB).
The single currency tested the $1.17 level before rebounding slightly to $1.1750, maintaining a cautious stance ahead of upcoming ECB and Federal Reserve speeches.
The ECB recently hinted at the end of its rate-cut cycle, citing persistent inflation risks from tariffs, services, food, and fiscal policy. By contrast, the Fed delivered its first rate cut since December, with Chair Jerome Powell framing the move as “risk management” rather than a full easing cycle.
Markets now await US economic data to clarify the Fed’s policy path, as EUR/USD struggles to sustain momentum above 1.19. GBP/USD also slipped below its 100-day moving average to trade under 1.35.
Currency traders remain focused on whether diverging monetary policies between the ECB and Fed will drive further volatility in FX markets.
