FX.co ★ Euro Holds Firm Ahead of Key Week for Global Markets

The euro remained relatively stable at approximately $1.16, maintaining its position from the previous week's levels, as markets approached a pivotal week packed with significant global trade negotiations, central bank gatherings, and major economic data releases throughout Europe. Investors were encouraged by indications of progress in trade discussions between the US and China, and focus has now shifted to the upcoming meeting on Thursday between Presidents Trump and Xi Jinping. This meeting is anticipated to finalize the framework of a preliminary agreement that was deliberated over the weekend. Simultaneously, the European Central Bank (ECB) is largely expected to keep interest rates unchanged during its Thursday session. In contrast, the US Federal Reserve is likely to reduce borrowing costs, responding to signs of a decelerating labor market and inflation rates that have fallen short of expectations. As the week progresses, the Eurozone will unveil its preliminary third-quarter GDP figures and October inflation data, offering additional insight into the region’s economic forecast.