30.04.202612:27:36UTC+00Euro Rises to $1.17 as ECB Leaves Options Open

The euro ticked up to $1.17, rebounding from three-month lows and on track for a monthly gain of more than 1% against the dollar. The move followed the ECB’s decision to leave interest rates unchanged, as widely expected, while keeping all options open for its June meeting and beyond. Policymakers indicated that although recent data remain broadly consistent with their inflation projections, upside risks to inflation and downside risks to growth have increased. Money markets are still pricing in roughly 75 basis points of additional rate hikes by the end of the year. On the data front, Eurozone inflation accelerated to 3% in April, its highest level since September 2023 and well above the ECB’s 2% target. At the same time, the bloc’s economy slowed unexpectedly in the first quarter, expanding by just 0.1% as the conflict in the Middle East disrupted energy supplies.