The euro held near $1.18 as investors digested fresh inflation data and its implications for European Central Bank policy. Germany’s regional CPI suggested easing price pressures in February, while France’s EU-harmonized index accelerated to 1.1% from 0.4% in January, above the 0.7% forecast. In Spain, HICP rose 2.5%, exceeding both January’s 2.4% and market expectations of 2.3%. Money markets currently assign just a 30% probability to an ECB rate cut by December. Speaking to the European Parliament on Thursday, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term, with food inflation, key to consumer perception, projected slightly above 2% later this year. She added that the ECB will monitor currency movements but does not plan direct intervention in foreign exchange markets.