Euro Steadies Ahead of Key Sentiment Data

The euro started the week on a calm and steady note, holding on to last week’s gains as traders awaited fresh economic signals from Europe. The currency’s recent stability reflects improving confidence in the eurozone and a moderation in expectations for further U.S. interest rate hikes, which has helped narrow the gap between European and American bond yields.

The recovery seen last week was supported by shifting market sentiment rather than sudden policy changes. While the European Central Bank continues to maintain a neutral tone, investors appear increasingly confident that Europe’s economic outlook is stabilizing after months of uncertainty.

Attention now turns to Tuesday’s ZEW sentiment survey, which is expected to show improved readings for both current economic conditions and future expectations. A stronger result could bolster optimism about the region’s resilience heading into the end of the year.

Overall, the euro’s calm performance suggests that traders are adopting a wait-and-see approach, balancing cautious optimism with a focus on upcoming data that could shape the currency’s next direction.