The euro rose in European trade on Friday against a basket of major rivals, after a seven-session wave of losses against the dollar that sent the common currency to 2-⅕ month lows.

The euro is about to register its third weekly loss in a row after the European Central Bank cut interest rates for the third time this year, while expecting another cut in December.

The Price

The EUR/USD pair rose 0.2% today to $1.0848, with a session-low at $1.0825.

The pair closed down 0.3% on Thursday, the seventh loss in a row for the euro, plumbing a 2-⅕ month low at $1.0811 following the European Central Banks policy meeting.

Weekly Trades

Across this week, euro is down over 0.8% so far against the dollar, about to mark its third weekly loss in a row.

The ECB

The European Central Bank voted to cut interest rates by 25 basis points to 3.40%, the lowest since February 2023, thus matching analysts' expectations.

The ECB said its policy decision is based on inflation forecasts and dynamics for the months to come.

Itll continue relying on data and economic developments to decide on its next policy decisions.

Lagarde

ECB President Christine Lagarde said the decision to cut interest rates for the third time this year came amid a lull in inflationary pressures.

She said that recent eurozone inflation data are matching the ECB expectations, however it warned of a late spike in prices in the final part of the year.

European Rates

Four sources close to the matter told Reuters the ECB is likely to cut interest rates once more in December, unless data decide otherwise.

Following the report, the odds of a 0.25% ECB rate cut in December rose from 70% to 85%.