FX.co ★ Euro Slips Below $1.16 on Mixed EU Data

In the last trading session of the month, the euro dipped just below $1.16 as investors evaluated a series of economic reports, assessing their potential effects on the European Central Bank’s future policy decisions. In Germany, retail sales decreased by 0.3% in October, contrary to predictions of a 0.2% rise, highlighting persistent challenges in consumer demand amidst high levels of uncertainty. German inflation figures indicated that the rate remains slightly above the ECB's 2% target. In other parts of the eurozone, both France and Italy saw stable inflation rates that fell short of expectations, at 0.9% and 1.2% respectively, while Spain experienced a minor decline in inflation to 3.0%, less than projected. These data points, along with ECB meeting minutes suggesting little urgency among policymakers to alter rates, left market anticipations largely unaltered, with predictions continuing to suggest no rate changes through to 2026. Meanwhile, in the United States, weaker economic data and dovish remarks from several Federal Reserve officials have strengthened the outlook for a third rate cut by the Fed in December.