The euro gained 0.28% against the dollar while the greenback steadied after a divided Federal Reserve decision.
The pair traded at 1.1215 during early Friday session hours. Prices moved within a range of 1.1177 to 1.1217 since the current session opened on Thursday evening. Trading over the prior five sessions occurred between 1.1113 and 1.1227.
The dollar steadied after the Federal Reserve held rates but left the future policy path unclear. Officials voted 10-2 to keep the benchmark rate at 3.75% to 4%, with two members favoring a hike. The Fed chair offered no clear guidance on December actions, which traders interpreted as slightly dovish.
The US Dollar Index fell 0.42% to stand at 101.61. US 10-year Treasury yields declined by 7 basis points to 4.98% on October 29. Prediction market participants assigned a 71% probability to a 25 basis point rate hike in December 2026.
Analysts note that attention now shifts to upcoming US inflation data and European Central Bank proceedings. The ECB is expected to maintain its deposit rate at 2.5% with questions about French bond turmoil likely to overshadow the decision. Economists suggest the central bank might utilize emergency bond-buying tools for other eurozone members while holding steady on France.
German unemployment change data is scheduled for release at 08:55 UTC on Friday. The consensus forecast predicts a change of 5K against a previous reading of 12K. US Employment Cost Index figures will follow at 12:30 UTC with a consensus estimate of 0.8%.
Sources: Yahoo Finance quotes, US Treasury, Kalshi, ForTraders economic calendar.
