The euro hovers near multi-month lows, awaiting the European Central Bank decision.

(1) The euro has weakened to 1.115, hovering at its lowest level since April 2025. (2) Market sentiment remains under pressure from deteriorating French fiscal prospects and rising concerns in the bond market, as investors await the European Central Bank's policy decision as well as key inflation and GDP data from the eurozone. (3) With signs of slowing economic growth, the market widely expects the European Central Bank to keep interest rates unchanged this week, focusing attention on its forward guidance. (4) GDP data to be released on Friday is expected to show weaker growth in the eurozone, reflecting adverse factors such as summer heatwaves, low water levels in major waterways, and surging global bond yields. (5) Meanwhile, the inflation situation remains mixed, with Germany's fuel tax rebate and slowing inflation in Spain expected to ease price pressures. (6) In the United States, the Federal Reserve is also expected to keep interest rates unchanged this week, with market pricing suggesting that both central banks may raise rates in December.