The euro rose in European trading on Thursday against a basket of global currencies, resuming its recovery from seven-month lows against the US dollar, supported by buying activity at cheaper levels and a weaker US currency following the Federal Reserve meeting.

The European Central Bank is set to conclude later today its second monetary policy meeting of 2026, with expectations that interest rates will remain unchanged for the sixth consecutive meeting. The upcoming statement is expected to provide further signals and clarity بشأن the future path of interest rates this year.

Price overview

Euro exchange rate today: the euro rose 0.35% against the dollar to $1.1491, from the session opening level of $1.1452, after recording a low of $1.1450.

The euro ended Wednesdays trading down 0.75% against the dollar, marking its first loss in three days, following strong US economic data and a pause in its recovery from a seven-month low of $1.1411.

European Central Bank

The European Central Bank will conclude later today its regular monetary policy meeting, with expectations for rates to remain unchanged, while the policy statement is likely to provide further insight into the trajectory of interest rates throughout the year.

Expectations are currently stable for keeping European interest rates unchanged at 2.15%, the lowest level since October 2022, for the sixth consecutive meeting.

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

Euro outlook

According to FX News Today, if the European Central Banks comments come in more hawkish than expected, this would reduce the likelihood of interest rate cuts this year and support further gains in the euro against a basket of global currencies.

US dollar

The dollar index fell 0.25% on Thursday, reflecting weakness in the US currency against a basket of global currencies.

On Wednesday, the Federal Reserve kept interest rates unchanged for the second consecutive meeting, while projecting higher inflation, stable unemployment, and only one rate cut in borrowing costs this year.

Federal Reserve Chair Jerome Powell described this outlook as highly uncertain, as policymakers assess the impact of US-Israeli strikes on Iran.