FX.co ★ Euro Steadies Above $1.17 Ahead of Key Economic Data

The euro climbed back above $1.17, rebounding from the two-week lows hit last week, as investors look ahead to a packed calendar of economic data and global rate decisions. Key releases include Eurozone inflation and GDP figures. Inflation in the bloc is forecast to rise to 2.9% in April, its highest level since December 2023, driven largely by higher energy prices linked to the conflict in the Middle East.

Against this backdrop, the European Central Bank is widely expected to leave interest rates unchanged at its meeting on Thursday, opting for a wait-and-see stance amid shifting macroeconomic and geopolitical conditions. Market pricing still points to two quarter-point rate increases in 2026, with the possibility of a third by year-end.

On the geopolitical front, reports suggest that Iran has submitted a new proposal to the United States aimed at reopening the Strait of Hormuz. This follows US President Donald Trump’s announcement over the weekend that he had canceled a planned trip by US envoys to Pakistan for talks with Iran.