The euro hovered around $1.16, little changed from the previous week’s levels, as markets entered a crucial week filled with global trade negotiations, central bank meetings, and key economic data releases across Europe. Investors welcomed signs of progress in US–China trade talks, with attention now turning to the upcoming meeting between Presidents Trump and Xi Jinping on Thursday, expected to finalize the framework of a preliminary deal discussed over the weekend. Meanwhile, the European Central Bank (ECB) is widely expected to hold interest rates steady at its Thursday meeting, while the US Federal Reserve is anticipated to cut borrowing costs amid signs of a slowing labor market and weaker-than-expected inflation. Later in the week, the Euro Area will release flash third-quarter GDP figures and October inflation data, providing further insight into the region’s economic outlook.
