The euro rose in European trading on Wednesday against a basket of global currencies, attempting to recover from a three-month low against the U.S. dollar. The single currency is on track for its first gain in six sessions, supported by buying activity at lower levels and by the pause in the dollars recent rally in foreign-exchange markets.

Easing inflation across Europe in October reduced pressure on European Central Bank policymakers and revived expectations for a potential rate cut in December.

Price Overview

EUR/USD rate today: The euro rose 0.15% to 1.1498 dollars from the opening level of 1.1482, after touching an intraday low of 1.1477.

On Tuesday, the euro fell 0.3% against the dollarits fifth straight daily losshitting a three-month low at 1.1473 amid persistent selling pressure.

U.S. Dollar

The dollar index fell 0.15% on Wednesday, retreating from a three-month high of 100.25 points, reflecting a pause in the U.S. currencys recent uptrend against major and minor peers.

Beyond profit-taking, the dollar eased ahead of key U.S. data due later in the day on private-sector employment in October, which is expected to offer fresh insight into labor-market conditions.

Negative Pressure

Despite the euros current rebound, the common currency remains under downward pressure as investors continue to favor the U.S. dollar as the most attractive asset in the market. Persistent concerns over a prolonged interest-rate gap between the U.S. and Europe also weigh on sentiment.

European Interest Rates

Data released late last week confirmed a slowdown in headline inflation across the euro area in October, as expected, while core inflation remained stickyreducing pressure on the ECB to maintain its restrictive stance.

Following those figures, money-market pricing for a 25-basis-point ECB rate cut in December rose from 10% to 25%.

Investors now await further economic data from Europe and comments from ECB officials to reassess the outlook for monetary policy.