The euro traded just below $1.15, touching a three-month low, after ECB wage data signaled easing pay growth, bolstering expectations that the central bank will keep interest rates unchanged. The ECB’s wage tracker, which closely mirrors its indicator of negotiated wages, showed average wage growth slowing to 3.0% in 2025 from 4.9% in 2024, and further to 2.2% by Q3 2026, broadly consistent with the ECB’s 2% inflation target. Separately, data confirmed that Eurozone private sector activity expanded at the fastest pace since May 2023. Last week, the ECB held rates steady while maintaining a cautiously optimistic growth outlook and leaving its inflation forecast unchanged. Meanwhile, the US dollar strengthened as traders scaled back bets on additional Fed rate cuts, following Chair Powell’s remarks that further easing in December is “not a foregone conclusion.” A stronger-than-expected ADP jobs report added to the dollar’s momentum, reinforcing perceptions of a resilient US economy.