According to a report from Monex Europe analysts, the fundamental environment for the euro appears relatively favorable, yet its movements continue to be driven by external factors. They noted that the European Central Bank seems content to keep interest rates unchanged, inflation in the eurozone is slowing, and recent Purchasing Managers' Index data indicates a stabilization in the manufacturing sector. "Despite this, the euro remains constrained by external influences, especially in the short term given the light economic calendar within the eurozone," the analysts stated. They added that the euro-to-dollar exchange rate is expected to continue trading near current levels for the time being. The euro held steady at $1.1784.
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