The euro (EUR) gained some ground against the US dollar (USD) on Wednesday, bouncing back from earlier declines as the dollar’s strength began to wane. At this point, EUR/USD was trading around 1.1589, recovering from an intraday low of about 1.1594, and marking its sixth consecutive day of gains.
The U.S. House of Representatives is set to vote later in the day on a bill intended to reopen government agencies and restart federal operations. House Majority Leader Steve Scalise indicated to CNBC that voting is expected around 7 p.m. ET, following a bipartisan approval in the Senate earlier this week, where the bill passed with a 60-40 vote.
This news helped alleviate immediate fiscal concerns and positively influenced market sentiment. If the bill is approved, it will move to President Donald Trump for final consent. The legislation aims to fund most federal agencies through January 30, 2026, while some departments would receive funding extensions until September 30, 2026.
The euro’s modest rise is also supported by steady inflation figures from Germany and assertive comments from the European Central Bank (ECB). Germany’s Harmonized Index of Consumer Prices (HICP) increased by 0.3% month-on-month and 2.3% year-on-year in October, which matched expectations and reinforced the belief that inflation in the eurozone is likely to remain stable.
Additionally, ECB policy member Isabel Schnabel remarked earlier that the economy in the region continues to show “positive underlying momentum,” adding that “services inflation remains sticky.” He suggested that while inflation risks were “slightly tilted to the upside,” current interest rates were “in a perfectly good position,” indicating that the ECB might be fine with its existing policy for now.
Looking forward, traders will keep an eye on the ongoing developments in Washington regarding the government shutdown vote. In Europe, attention will shift to the upcoming report on eurozone industrial production set for Thursday. In the U.S., uncertainty over delays in the release of key statistics, like the Consumer Price Index (CPI), has left markets wary about the future direction of the Federal Reserve’s monetary policy.
