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2025-09-17 15:29:24
Euro Holds Steady at Nearly Three-Year High, Awaiting Guidance from the Fed's Decision. ⑴ The euro stabilized above 1.18 against the US dollar, remaining near its strongest level since September 2021, as investors awaited the Fed's policy decision and updated economic forecasts later today. ⑵ The market generally expects the Fed to cut interest rates by at least 25 basis points and signal further easing as policymakers balance a cooling labor market with tariff-driven inflationary pressures. ⑶ European officials continued to emphasize a cautious stance, with ECB Executive Board member Schnabel urging policymakers to "remain prudent" and be vigilant to risks posed by tariffs, services inflation, food prices, and fiscal policy. ⑷ Slovak National Bank Governor Kazimir Eriksson echoed the warning, saying it would be a "mistake" to underestimate these risks. ⑸ The ECB kept borrowing costs unchanged for the second consecutive meeting last week, suggesting its rate-cutting cycle may be over.
