The euro was little changed against the dollar on Monday as investors adopted a cautious stance ahead of tomorrow’s European Central Bank (ECB) President Christine Lagarde’s speech and the release of key ZEW sentiment surveys for Germany and the euro area.
The reports are expected to show a modest improvement, with the eurozone index seen rising from 22.7 to 23.5 and Germany’s from 39.3 to 40.
Stronger readings could bolster confidence in the region’s economic outlook and lend support to the euro.
Eurozone yields were relatively stable, with Germany’s 10-year treasury yield hovering near 2.67%, reflecting steady expectations that the ECB will keep rates unchanged for now. Recently, ECB Vice President Luis de Guindos said current interest rate levels remain appropriate, though policy could be adjusted if inflation or growth projections shift materially.
Investors remain attentive to Lagarde’s remarks, which could influence the euro and European bond markets. Across the Atlantic, optimism that the U.S. government shutdown may soon end could benefit the dollar against the euro.
