2026.02.2009:31:24UTC+00Euro Hovers Near One-Month Low

The euro hovered around $1.175, near its weakest level in a month, as stronger-than-expected eurozone PMI data failed to counter sustained dollar strength driven by hawkish Federal Reserve signals and resilient US economic data. Recent surveys showed private-sector activity in the euro area expanding at its fastest pace since November, supported by the sharpest increase in factory output since August 2025 and more robust growth in services. In Germany, manufacturing activity grew for the first time since June 2022.

Markets also reacted to comments from European Central Bank President Christine Lagarde, who told The Wall Street Journal she intends to serve out her full term, dismissing earlier speculation about an early exit. In the United States, minutes from the Federal Reserve’s latest meeting indicated that policymakers remain divided over the interest rate trajectory, signaling that the next Fed chair could face difficulties in implementing rate cuts.