2026.02.0513:28:50UTC+00Euro Steadies After ECB Holds Rates

The euro hovered around $1.18, rebounding from slight losses earlier in the session, following the European Central Bank's (ECB) decision to maintain interest rates as anticipated. The ECB reaffirmed its expectation that inflation will stabilize around its 2% target over the medium term, while acknowledging that the eurozone economy remains robust despite an uncertain outlook shaped by global trade policy risks and ongoing geopolitical tensions. The central bank has maintained its policy stance since June, labeling it as "in a good place." However, several officials have warned that a further appreciation of the euro could prompt a reassessment of potential rate cuts. Additionally, data from Eurostat indicated that headline inflation decreased to 1.7% year-on-year in January, aligning with expectations and representing the lowest rate since September 2024. Core inflation also fell to 2.2%, slightly below projections and marking the lowest figure since October 2021.