The euro rose in European trade on Friday against a basket of major rivals, after a seven-session wave of losses against the dollar that sent the common currency to 2-⅕ month lows. 

The euro is about to register its third weekly loss in a row after the European Central Bank cut interest rates for the third time this year, while expecting another cut in December.

The Price 

The EUR/USD pair rose 0.2% today to $1.0848, with a session-low at $1.0825.

The pair closed down 0.3% on Thursday, the seventh loss in a row for the euro, plumbing a 2-⅕ month low at $1.0811 following the European Central Bank’s policy meeting.

Weekly Trades 

Across this week, euro is down over 0.8% so far against the dollar, about to mark its third weekly loss in a row.

The ECB 

The European Central Bank voted to cut interest rates by 25 basis points to 3.40%, the lowest since February 2023, thus matching analysts' expectations. 

The ECB said its policy decision is based on inflation forecasts and dynamics for the months to come.

It’ll continue relying on data and economic developments to decide on its next policy decisions. 

Lagarde 

ECB President Christine Lagarde said the decision to cut interest rates for the third time this year came amid a lull in inflationary pressures.

She said that recent eurozone inflation data are matching the ECB expectations, however it warned of a late spike in prices in the final part of the year.

European Rates

Four sources close to the matter told Reuters the ECB is likely to cut interest rates once more in December, unless data decide otherwise.

Following the report, the odds of a 0.25% ECB rate cut in December rose from 70% to 85%.

Most cryptocurrencies lost ground on Thursday amid an improving risk appetite and after the European Central Bank’s interest rate decision. 

US retail sales were up 0.4% m/m in September, beating estimates of a 0.3% rise.

Other data showed unemployment claims fell by 19 thousand to 241 thousand in the week ending October 2, while analysts expected 260 thousand. 

Otherwise, the European Central Bank decided to cut interest rates for the third time this year by 0.25% as inflation slowed down more than expected in the eurozone. 

Global central banks are gaining more confidence about controlling inflation, and they in turn accelerate the push to ease monetary policies. 

Ethereum

On trading, ethereum prices fell 0.8% on Coinmarketcap as of 20:59 GMT to $2597, but the cryptocurrency still marked a huge weekly profit of 10%. 

Oil prices rose on Thursday after US crude inventory data, which showed a larger than expected drop.

The Energy Information Administration reported a drawdown of 2.2 million barrels in US crude stocks last week to 420.5 million barrels, while analysts expected a rise of 1.8 million barrels. 

Gasoline stocks fell by 2.2 million barrels to 212.7 million barrels, while distillate stocks fell by 3.5 million barrels to 115.0 million barrels. 

The weekly report also showed US oil production rose 100 thousand bpd to a record high of 13.5 million bpd.

On trading, Brent futures due in December rose 0.3%, or 23 cents to $74.45 a barrel.

US crude futures due in November rose 0.4% to $70.67 a barrel.

Gold prices rose on Thursday even as the dollar gained ground against most major rivals, and following strong US data.

US retail sales up 0.4% m/m in September, beating estimates of a 0.3% rise.

Other data showed unemployment claims fell by 19 thousand to 241 thousand in the week ending October 2, while analysts expected 260 thousand. 

Otherwise, the European Central Bank decided to cut interest rates for the third time this year by 0.25% as inflation slowed down more than expected in the eurozone. 

Global central banks are gaining more confidence about controlling inflation, and they in turn accelerate the push to ease monetary policies. 

Otherwise, the dollar index rose 0.2% to 103.8 as of 20:23 GMT, with a session-high at 103.8, and a low at 103.4.

On trading, spot gold prices rose 0.6% as of 20:23 GMT to $2707 an ounce.