EUR/USD rebounds as ECB holds rates and US inflation cools
The post EUR/USD rebounds as ECB holds rates and US inflation cools appeared on BitcoinEthereumNews.com.
The Euro (EUR) regains ground against the US Dollar (USD) on Thursday after the European Central Bank (ECB) kept its three key policy rates unchanged. At the time of writing, EUR/USD trades around 1.1756, reversing higher after dipping to an intraday low near 1.1712. The ECB left borrowing costs unchanged for a fourth consecutive meeting. The interest rates on the Deposit Facility, the Main Refinancing Operations and the Marginal Lending Facility were kept steady at 2.00%, 2.15% and 2.40%, respectively, in line with market expectations. The Governing Council reiterated its commitment to ensuring that inflation stabilises at its 2% target over the medium term. Policymakers stressed that future decisions will remain data-dependent and taken on a meeting-by-meeting basis, guided by the inflation outlook, incoming economic and financial data, underlying price dynamics and the effectiveness of monetary policy transmission. The ECB also underlined that it is not pre-committing to a specific rate path. The ECB’s latest staff projections show inflation moving back toward the 2% target over the medium term. Headline inflation is expected to average 2.1% in 2025, ease to 1.9% in 2026 and 1.8% in 2027, before returning to 2.0% in 2028. The ECB noted that the 2026 inflation outlook was revised higher as services inflation is now expected to cool more slowly. The ECB also upgraded its growth outlook compared with the September forecasts. The Eurozone economy is now expected to grow 1.4% in 2025, 1.2% in 2026 and 1.4% in 2027, with growth seen holding at 1.4% in 2028, supported mainly by domestic demand. Further supporting the Euro, the US Dollar came under pressure after the latest US inflation report surprised to the downside, reinforcing expectations that the Federal Reserve (Fed) could deliver further monetary policy easing into 2026. The Consumer Price Index (CPI) rose 2.7% YoY…
Filed under: News - @ December 18, 2025 2:29 pm