The European Central Bank surprised markets by announcing that President Christine Lagarde will resign on February 7, far ahead of her planned 2027 departure. In the United States, third-quarter economic growth topped forecasts thanks to strong consumer spending and artificial intelligence investments. Meanwhile, accelerating September inflation driven by gasoline costs reinforced bets on a December Federal Reserve rate hike. Despite these shifts, currency markets remained subdued as investors had largely priced in the broader macroeconomic trajectory.
Key points
European central bankers face persistent inflation risks tied directly to surging regiona…: European central bankers face persistent inflation risks tied directly to surging regional energy costs.
Solid economic growth and stubborn inflation keep the Federal Reserve on track for a Dece…: Solid economic growth and stubborn inflation keep the Federal Reserve on track for a December rate hike.
The Federal Reserve delayed borrowing cost adjustments until after the conclusion of the…: The Federal Reserve delayed borrowing cost adjustments until after the conclusion of the midterm election.
Sources checked by our analysis pipeline: 1
NEW YORK/LONDON, Oct 29 : The euro was steady on Thursday after the European Central Bank kept interest rates unchanged, while the dollar was flat against other major currencies in the wake of data showing rising US inflation.
The ECB left interest rates unchanged in a well-telegraphed move but warned that inflation risks were on the rise from surging energy costs. The central bank also announced the early departure of President Christine Lagarde, who has resigned and will step down on February 7, ahead of the end of her tenure in October 2027.
The euro fell to its lowest since May but was last up 0.07 per cent on the day at around $1.1158.
"As expected, the ECB leaves rates unchanged at today’s meeting, but signals that a rate hike in December is firmly in play, citing upside risks to the inflation outlook," said Marchel Alexandrovich, European economist at Saltmarsh Economics.
"The bigger news is the confirmation that Christine Lagarde will leave her post in February, rather than in October of next year. Markets will not be surprised by the…
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