The euro rose at the opening of the European market on Thursday against a basket of global currencies, resuming gains after two days of losses against the US dollar, moving toward a seven-week high. However, the rise remains limited amid ongoing geopolitical tensions in Eastern Europe.

Ahead of the European Central Banks monetary policy decisions later today, interest rates are widely expected to remain unchanged for the second consecutive meeting.

Global financial markets are awaiting signals from the ECB on the possibility of resuming the monetary easing cycle during the remainder of this year.

Price Overview

Exchange rate of the euro today: The euro rose against the US dollar by 0.1% to ($1.1707), from todays opening price at ($1.1695), recording the lowest at ($1.1693).

The euro ended Wednesdays trading down by 0.1% against the US dollar, marking a second consecutive daily loss, as correction and profit-taking continued from the seven-week high of $1.1780.

Geopolitical Tensions

As geopolitical tensions escalated on Europes eastern front, Poland announced on Wednesday that it intercepted and shot down Russian drones suspected of violating its airspace, with support from NATO aircraft.

This incident marks a significant precedent, as it is the first time a NATO member state has announced the direct use of military force since the outbreak of the Russia-Ukraine war, highlighting the seriousness of the situation and the risk of conflict expansion.

European Central Bank

The European Central Bank concludes later today its sixth monetary policy meeting of 2025, with expectations of maintaining a pause in rate cuts. The awaited statement is expected to provide further signals and clarifications about the future path of interest rates for the remainder of this year.

Expectations are currently stable for the ECB to keep interest rates unchanged at the 2.15% range, the lowest level since October 2022, for the second consecutive meeting.

The ECB interest rate decision and policy statement are due at 12:15 GMT, followed by a press conference with ECB President Christine Lagarde at 12:45 GMT.

Euro Outlook

At Economies.com, we expect: If the ECBs comments turn out more hawkish than markets anticipate, the odds of an interest rate cut before year-end will decline, leading to further gains in the euro against a basket of global currencies.