Euro Zone: EUR Steadies Above $1.17 Ahead of Key Economic Data.

The euro strengthened above $1.17, recovering from two-week lows recorded last week, as investors await a busy week of economic releases, including Eurozone inflation and GDP data, and global interest rate decisions. Eurozone inflation is expected to hit 2.9% in April, the highest since December 2023, fueled by surging energy prices tied to the Middle East conflict. At the same time, the European Central Bank is likely to keep rates unchanged at its Thursday meeting, adopting a wait-and-see approach amid evolving macroeconomic and geopolitical conditions. Markets still anticipate two quarter-point rate hikes in 2026, with a potential third by year-end. Meanwhile, reports indicate that Iran has submitted a new proposal to the US aimed at reopening the Strait of Hormuz following US President Donald Trump’s announcement over the weekend that he canceled a planned trip by US envoys to Pakistan for talks with Iran.