The euro rose in European trading on Thursday against a basket of global currencies, resuming its gains after a brief pause yesterday versus the US dollar. The currency moved into positive territory, supported by a pullback in the dollars rally following the conclusion of the Federal Reserve meeting.

The advance comes ahead of the European Central Banks monetary policy decision later today, with markets widely expecting interest rates to remain unchanged for the third consecutive meeting.

Global investors are closely watching for any new signals from the ECB regarding the potential resumption of its monetary easing cycle next year, amid low odds of such a move in December.

Price Overview

EUR/USD rose 0.3% to 1.1637, up from the days opening at 1.1600, after touching a low of 1.1597.

The euro closed Wednesday down 0.25% against the dollar, its first loss in six sessions, following more hawkish remarks from Fed Chair Jerome Powell.

US Dollar

The US Dollar Index declined more than 0.2% on Thursday, retreating from a two-week high of 99.36 points, reflecting a pause in the greenbacks recent rally against major and minor currencies.

Beyond profit-taking, the dollars pullback was also driven by easing trade tensions between the United States and China, along with continued market conviction that the Federal Reserve will cut rates again in December.

European Central Bank

The ECB concludes its seventh policy meeting of 2025 later today, with expectations pointing to another pause in rate cuts. The upcoming statement is anticipated to provide further insight into the banks outlook for interest rates through the remainder of this year and into 2026.

Current projections suggest that the ECB will maintain its key rate unchanged at 2.15%, the lowest level since October 2022, marking the third consecutive meeting without adjustment.

The ECB rate decision and policy statement are due at 13:15 GMT, followed by a press conference from President Christine Lagarde at 13:45 GMT.

Euro Outlook

At Economies.com, we expect that if the ECBs tone proves more hawkish than markets anticipate, the likelihood of a December rate cut will decline a scenario that could drive further gains for the euro against a broad basket of global currencies.