The euro rose in European trade on Thursday against a basket of major rivals after a wave of losses across three sessions, with the euro eventually settling above 3-⅕ month lows against the US dollar.

It comes ahead of major data on the eurozone sectors later today, which would shed important light on the health of the European economy in the final quarter of the year.

The Price

The EUR/USD pair rose 0.1% today to $1.0793, with a session-low at $1.0778.

The pair closed down 0.15% on Wednesday, marking the third loss in a row, and hitting a 3-⅕ month trough at $1.0761 after beariah remarks by Christine Lagarde.

Lagarde

European Central Bank President Christine Lagarde said on Tuesday that eurozone inflation is on its way down, and could reach the 2% target faster than expected.

She said the direction of the monetary policy has become clear, however, future interest rate cuts will depend on future data.

The ECB cut interest rates three times this year, and will likely cut it once more before the year-end.

European Rates

Four sources told Reuters that the ECB will likely cut interest rates once more in December, unless data pointed otherwise.

And after Lagardes latest remarks, the odds of an ECB interest rate cut in December rallied from 85% to 95%.

Interest Rate Gap

The eurozone-US interest rate gap is standing at 160 basis points in favor of the US, the largest since June 2022, which continues to weigh on the common currency.