Euro steady against dollar after ECB leaves rates unchanged
TLT•The euro was up 0.07% at around $1.1158 after the ECB kept rates unchanged and warned of rising inflation risks from energy costs. The dollar index fell 0.08% to 102.05 as U.S. data showed accelerating inflation and stronger-than-expected third-quarter growth.
1. ECB holds rates steady
The European Central Bank left interest rates unchanged, a widely expected decision, while warning that surging energy costs were increasing inflation risks. The euro fell to its lowest level since May before trading up 0.07% at around $1.1158.
2. Lagarde to depart early
The ECB announced that President Christine Lagarde had resigned and would leave on February 7, ahead of the end of her tenure in October 2027. Economist Marchel Alexandrovich said the ECB signaled that a rate hike in December was firmly in play and that Lagarde's departure would bring a significant reshuffle into focus.
3. U.S. data supports rate expectations
U.S. data showed inflation accelerated in September as consumers paid more for gasoline and other goods, while the economy grew faster than expected in the third quarter, supported by consumer spending and AI-driven business investment. The dollar index fell 0.08% to 102.05. Eugene Epstein said the dollar had not reacted significantly because much of the news was expected and priced in.
