The euro rose in European markets on Thursday against a basket of global currencies, extending its gains for a fifth consecutive day against the US dollar and reaching its highest level in two weeks. This advance was supported by continued weakness in the US currency, ahead of the European Central Banks upcoming policy decisions.

The ECB is widely expected to leave interest rates unchanged following its seventh consecutive cut at the previous meeting. Markets are now watching closely for additional signals regarding the possibility of resuming the monetary easing cycle during the remainder of the year.

The Price

The euro rose 0.1% against the dollar to $1.1780 its highest level since July 7 up from todays opening price of $1.1767, with an intraday low of $1.1762.

The euro had already closed Wednesday up 0.1% against the dollar, marking a fourth consecutive daily gain, amid optimism over a potential trade agreement between the European Union and the United States.

US Dollar

The US Dollar Index declined by 0.1% on Thursday, deepening its losses for the fifth consecutive session and hitting a two-week low of 97.10, reflecting ongoing weakness of the greenback against a basket of major and minor currencies.

This latest drop follows news that President Donald Trump is expected to visit the Federal Reserve later today. It remains unclear whether Trump who has repeatedly criticized Jerome Powell for not cutting US interest rates more aggressively will meet with the Fed Chair.

European Central Bank

The ECB will conclude its fifth policy meeting of 2025 later today, with expectations pointing to a pause in rate cuts. The upcoming statement is anticipated to provide further guidance on the future trajectory of interest rates through the rest of the year.

Current expectations suggest the ECB will keep rates unchanged at 2.15% the lowest level since October 2022 following the seventh consecutive cut in the previous meeting.

The interest rate decision and policy statement are due at 13:15 GMT, with ECB President Christine Lagarde set to speak at the press conference at 13:45 GMT.

Euro Outlook

Here at Economies.com, we expect that if the ECBs commentary proves more hawkish than expected, the likelihood of another rate cut before year-end could diminish, leading to further gains for the euro against a basket of global currencies.