FX.co ★ Euro Ends October Down More Than 1%

The euro ended the month near $1.12, registering a monthly decline of more than 1% against the US dollar and trading close to its lowest level in over a year. The currency came under sustained pressure amid mounting concerns about France’s fiscal outlook and the European Central Bank’s cautious stance on further monetary tightening.

Data released on Friday confirmed a loss of momentum in the eurozone economy in Q3, with overall activity slowing and France unexpectedly slipping into contraction as weaker exports and reduced investment dragged on output. Political turmoil further heightened uncertainty, driving yields on French OATs to their highest levels in more than two decades, while inflation continued to prove stubborn across the bloc.

On Thursday, the ECB left interest rates unchanged and refrained from providing clear guidance on the future policy path. President Christine Lagarde noted that a rate increase had been considered, but policymakers ultimately agreed unanimously to keep rates on hold, citing already tighter financial conditions as helping to curb price pressures.