Euro 'shouldn't have too much trouble' holding onto mild gains on the Dollar over next few months

There is once again very little to report out of the Euro Area, with the euro continuing to be driven almost entirely by developments in the US. That could change today with the release of a couple of notable economic reports on GDP and employment.

The former is expected to confirm that the bloc’s economy grew by a solid (if not spectacular) 0.3% in the final three months of 2025, while the latter is seen showing a broad slowdown in levels of employment growth.

Next week should be more revealing, as investors will have the latest PMI number, industrial production figures and a speech by ECB President Lagarde to digest.

So long as incoming data continues to suggest that the bloc’s economy is growing at healthy enough pace, supported by easing rates of inflation and increased fiscal expenditure, then the euro shouldn’t have too much trouble holding onto mild gains on the dollar from current levels in the coming months.