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EUR/USD hovers near lows with Eurozone inflation on tap

October 31, 2025

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The Euro remains vulnerable, with 1.1540 lows on the bears’ focus.
A mild risk aversion and a hawkish Fed are underpinning the US Dollar’s rally.
Eurozone inflation data is expected to show easing price pressures.

EUR/USD shows marginal losses on Friday’s early European session, trading at 1.1560 at the time of writing after being rejected at the 1.1580 area. The pair remains dangerously close to the 1.1540 support area, on track for a 0.5% weekly decline, amid a frail market sentiment and with all eyes on the Eurozone Harmonized Index of Consumer Prices (HICP) release, due at 10:00 GMT.

The US Dollar has been drawing support by a “hawkish cut” by the Federal Reserve on Wednesday – which prompted investors to pare back hopes of another cut in December – and a deal between US President Trump and Chinese President Xi Jinping to maintain the trade truce between the world’s two major economies.

In the Eurozone, the European Central Bank met expectations and left its benchmark interest rate unchanged at 2%. ECB President Christine Lagarde reiterated that the bank is “in a good place” and conveyed a fairly optimistic message, dismissing the possibility of further rate cuts in the near term. The Euro ticked up after the event, but upside attempts remain limited so far.

The highlight on Friday is the Eurozone preliminary HICP figures for October, which are expected to show that yearly inflation eased to 2.1% from 2.2% in the previous month, with the core reading slowing down to2.3% year-on-year growth from 2.4% in September.